The crypto trading platform BITMEX is implementing mandatory Know Your Customer (KYC) verification for all of its users. This requirement is a change of pace for the exchange, which many view as a lax and a lenient gray area operator. In its official announcement, BitMEX said, “The User Verification Programme will require individual users to go through a four-step process similar to ID checks on many other cryptocurrency exchanges. KYC regulations have been enforced by many entrepreneurship in crypto space in recent times.
According to the announcement, users will be required to upload a photo ID and proof of address, take a selfie, as well as answer a few multiple-choice questions about the source of funds and trading experience.
The KYC registration will begin on August 28.
According to the announcement, the KYC registration will begin on August 28 and be completed by February 12, 2021. This policy change from the crypto exchange may have been induced by the regulatory framework around the digital currency industry that is on the horizon. According to Ben Radclyffe, the commercial director for the BitMEX parent company, 100x Group, the crypto trading platform implemented its new KYC policy to “get ahead of evolving regulation.”
BitMEX users find a way to circumvent the geoblock.
Regardless of several steps BitMEX is taking to be compliant, it is well-known that BitMEX users that live in a restricted area find a way to circumvent the geoblock and trade on the platform. Even BitMEX CEO Arthur Hayes has also acknowledged that it’s possible for individuals living in restricted jurisdictions to mask their location by using a VPN. Currently, BitMEX requires its users to provide proof of address. Last year, the United States Commodities Futures Trading Commission (CFTC) announced that they were investigating the crypto exchange giant on allegations of breaking US laws. The exchange had banned the US residents from using the platform in 2015, but the CFTC believed that the exchange was still allowing Americans to trade on the platform.
