BitMEX Gives Only Two Weeks to Users for KYC Compliance

Crypto derivatives exchange BitMEX informs its users that they will have only two weeks for verification. If users fail to verify themselves, they will not be able to withdraw funds.

Deadline of Two Weeks

According to the announcement by BitMEX on November 19, users of the crypto derivatives exchange will have to complete the KYC verification by December 4. KYC verification is necessary if people want to trade or withdraw funds. Per BitMEX’s announcement:

“BitMEX users who have not yet verified have two more weeks to do so in order to continue trading, maintaining open positions, or withdrawing funds from the platform.”

After December 4, the company will close the open positions operated from unverified accounts. Only verified accounts will be able to withdraw funds after the deadline set by the trading company. “It is very important that users who choose not to verify close their positions before 4 December 2020 to avoid their positions being force-closed,” the announcement reads.

It is mandatory for all new users to complete KYC verification to use the services of BitMEX. There is not a complex process as it takes only five minutes to go through it.

On giving just two weeks for verification, the community has responded in a cold manner and criticized the exchange over it. They criticize most the inability of funds withdrawals in case of verification failure before the set date.

Lawsuits against BitMEX

The decision of strict verification comes after the regulatory authorities have taken legal steps against crypto derivatives exchange. In October, the Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ) have initiated lawsuits against the firm for running an unregistered trading platform and violation of the Bank Secrecy Act and Anti-Money Laundering (AML) policies.

In order to tight the compliance structure of the platform, BitMEX has also introduced Refinitiv Toolset for monitoring illegal actions over the platform. What’s more, it has also engaged in a partnership with Eventus Systems, the platform known for AML measures.

The exchange is also facing a lawsuit that says the founders of BitMEX has ‘looted’ $440 million.

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