The popular cryptocurrency derivatives exchange BitMEX announced that a user verification program will be launched on the site on August 28.
According to an article in the company’s blog, users will have to provide documents confirming their identity and place of residence. The exchange’s clients will have 6 months to complete verification procedures. The article says:
“Retail customers will need to upload a passport photo and proof of address, take a selfie, and answer a few questions about the source of funds and trading experience. The whole process will take a few minutes. Corporate clients will have to go through an existing verification process, and our team will help them do this as quickly and effectively as possible.”
BitMEX was one of the first platforms for trading cryptocurrency derivatives and always carefully adhered to the “spirit of free cryptocurrencies” – it did not require identification and worked exclusively with the input and output of digital assets. However, it seems that the platform is trying to start working in new jurisdictions that require user verification.
According to BitMEX employee Ben Radcliffe, identification procedures will help the company in the long term. According to him, they will “make work with regulators more transparent and accurate and support the requirements of regulators.”
Note that in recent months, things have not been going too well for the exchange – since November last year, the company’s share in the cryptocurrency derivatives market has decreased by about half. In addition, in June, the Bitcoin Manipulation Abatement (BMA) organization accused BitMEX of manipulating the market and serving American citizens without the necessary license.