BitMEX Has Finally Verified All Users But The BTC Balance Is Down 66%

BitMEX has finally verified all users but the BTC balance on the exchange got down 66% so let’s continue reading our cryptocurrency news today.

The crypto derivatives exchange BitMEX has finally verified all users and started 2021 with a “fully verified active user base” which comes on the heels of multiple CFTC charges made back in October 2020. In the meantime, the Bitcoin balances on the platform decreased by two-thirds. Crypto exchange BitMEX announced the completion of its “User Verification Programme” and said:

 “We’re pleased to confirm that our User Verification Programme has been successfully implemented, making BitMEX one of the largest crypto derivatives exchanges in the world with a fully verified active user base.”

With our User Verification Programme complete, we’re starting the year with a fully verified active user base – and there’s a lot to look forward to in 2021. Stay tuned. https://t.co/zf7mR4IgDm pic.twitter.com/mr60tkrF4B

— BitMEX (@BitMEX) January 7, 2021

BitMEX ramped up the rollout of the know-your-customer program back in October after the Commodity Futures Trading Commission filed money-laundering and other civil charges against it. CEO of 100x Group Alexander Hoptner said:

 “The completion of our User Verification Programme […] places us in an advantageous position to capitalise on the surge of users – both retail and institutional – who are seeking a platform on which to trade crypto derivatives confidently without sacrificing security, liquidity, or performance.”

While other users could start flowing in, the exchange was seeing more outflows of BTC from the users’ accounts and that process sped up after the CFTC charges. During 2020, BTC balances on BitMEX decreased by 66% from nearly 300,000 to just over 100,000 BTC according to the data from Glassnode. In the meantime, it’s not that the users had a choice whether to complete their KYC procedures but according to the official announcement of the exchange, the customers that remained unverified lost all ability to deposit, trade, and withdraw their funds:

 “With remaining open positions from unverified accounts closed and the scheduled expiry of the December 2020 futures on 25 December complete, 100 percent of volume on the BitMEX platform is now fully verified. Over 100 billion USD equivalent volume has been traded following the 4 December verification deadline.”

Cybercrime tends to peak over the holidays, and this year with bitcoin reaching an all time high, users should be extra vigilant. We highly recommend you enable 2FA before you switch off for the year. For background: https://t.co/8yKMreamNp

— BitMEX (@BitMEX) December 18, 2020

BitMEX also partnered with Eventus Systems in 2020 to provide more support to its “trade surveillance and anti-money laundering transaction capabilities.” As recently reported, The confluence of stagnant retail outflows from BTC and the demand from institutions are supporting the general sentiment around Bitcoin. Dan Tapiero, the co-founder of 10T Holdings also said that the shortages of BTC can happen because of the surging institutional interest.