Bitmex Fast-Tracks KYC Program as Regulators Tighten Screws on Anti-Money Lau...
Bitmex said Wednesday that it is fast-tracking its user verification program in order to comply with regulatory requirements. Users must now be fully verified by Nov. 5, 2020 “to continue trading on the platform,” it said. In a statement, the crypto derivatives exchange stated that “unverified users will not be able to open new positions” after this date. They will also “not be able to withdraw funds from their Bitmex account without completing verification” beginning Dec. 4. The accelerated verification means Bitmex’s mandatory know-your-customer....
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Charges against BitMEX for weak AML and KYC policies could be bad news for the world of decentralized finance In the aftermath of criminal charges against BitMEX, the crypto community is debating whether the decentralized finance sector is also set to face the wrath of regulators.On Oct 1, the U.S. Commodity Futures Trading Commission announced charges against three BitMEX executives for violating the Bank Secrecy Act (BSA) due to the exchange’s allegedly weak anti-money laundering and know-your-customer (KYC) policies. DeFi protocols, including Decentralized Exchanges (DEXs) have made a....
The CFTC and DOJ actions against BitMEX suggest that the crypto industry still has a lot of work ahead to meet KYC/AML standards. Recent years have seen the crypto industry mature across the global economic landscape, but it still runs into high-profile snags. On Oct. 1, the United States Department of Justice filed criminal charges against four executives of the BitMEX trading platform — including its founder, Arthur Hayes — for violating the Bank Secrecy Act. One of the executives in question has been arrested, according to a DOJ statement.Furthermore, the Commodity Futures Trading....
Despite criminal charges from the DOJ and at least one arrest of its leadership, Bitmex promises to continue operating as usual. In a blog post published Thursday afternoon, Bitmex lashed out at charges that the Commodity Futures Trading Commission and Department of Justice filed against the exchange and its management earlier today.Bitmex's statement claimed that "From our early days as a start-up, we have always sought to comply with applicable U.S. laws, as those laws were understood at the time and based on available guidance."What exactly "applicable U.S. laws" are will likely be....
Since the announcement from U.S. regulators, BitMEX has witnessed an outflow of more than 40,000 bitcoins, currently worth more than $422 million.
18 months after charges were filed, BitMEX executives will head to trial. The money laundering trial for the former executives of U.S. cryptocurrency exchange BitMEX has been scheduled for March 28, 2022.On May 11, New York District Judge John Koeltl set the trial date for former BitMEX executives CEO Arthur Hayes, co-founder Benjamin Delo, and chief technology officer Samuel Reed.The trio are accused of violating the Bank Secrecy Act and anti-money laundering laws. Additionally, BitMEX's head of business development, Gregory Dwyer, is also facing charges but has yet to appear in the....