The popular cryptocurrency derivatives exchange BitMEX announced that on August 28, a user verification program will be launched on the site.
According to an article in the company's blog, users will be required to provide documents proving their identity and place of residence. Exchange clients will have 6 months to complete the 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 regarding the source of funds and trading experience. The whole process will take a few minutes. Corporate clients will have to go through an already existing verification process, and our team will help them do it as quickly and efficiently as possible. "
BitMEX was one of the first platforms for trading cryptocurrency derivatives and has 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 looks like the site is trying to get started in new jurisdictions that require user verification.
BitMEX employee Ben Radclyffe said the identification procedures will help the company in the long term. According to him, they "will make the work with regulators more transparent and accurate and support the requirements of regulators."
Note that in recent months, the exchange has not been doing very well - since November last year, the company's share in the cryptocurrency derivatives market has dropped by about half. In addition, in June, Bitcoin Manipulation Abatement (BMA) accused BitMEX of manipulating the market and serving American citizens without the required license.