US Regulators Launch Investigation into BitMEX Exchange

As a regulator, the Commodity Futures Trading Commission (CFTC) is reported to have investigated on “Shady Rekting Racket” BitMEX Crypto Exchange.

US Regulators very active?

US regulators have recently been very active, forcing the largest platform, Binance, to separate its US users from international customers as early as next September. Bittrex and Poloniex are also exchanges that have been closed to US traders.  Now, the Commodity Futures Trading Commission (CFTC) will investigate for months and thoroughly on BitMEX and US user access to the platform. In fact, CFTC wants to know if the Americans are using BitMEX. According to sources quoting On July 19, the CFTC suspected that BitMEX, which is registered in Seychelles, was familiar to Bloomberg allowed US residents to use its platform to trade.

The investigation, whose details have not yet been confirmed by either BitMEX or the CFTC, was revealed on social media through Bloomberg reporter Tim Culpan. The probe is ongoing and the regulator’s investigations often don’t lead to allegations of misconduct. The CFTC declined to comment.

Actually, BitMEX is a special trading platform that offers Margin offers to its users. However, uncertainties regarding its monitoring of US regulations are emerging and are casting doubt in the ecosystem. In fact, in 2018, US regulators ruled that BitMEX did not follow the regulations in force with respect to trading activities in the territory. They forced the exchange to close the accounts of US traders. Actually, rules about cryptocurrency trading vary greatly by country and BitMEX has posted a notice on its website that people who are citizens or residents of the U.S. or the Canadian province of Quebec are prohibited from using the platform under its terms of service. Some traders have taken to social media to complain about being booted from BitMEX on suspicion of being from the U.S.

In response, the trading platform was forced to act. BitMEX simply closed the accounts of users whose IP was based in the United States. Subsequently, it also prevented Internet users whose computer was located in the territory of the world’s leading power from being able to access its service.

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