BTC Derivatives Platform BitMEX Makes KYC Obligatory: Report

The BTC Derivatives platform BitMEX makes KYC obligatory and the future looks quite bright for the DeFi protocols so let’s find out more in the upcoming Bitcoin news today.

The BTC derivatives platform BitMEX is implementing KYC for all users despite their trading size. Moving in the direction of regulatory requirements can push the exchange into a playground for the hedge funds. This provides a lot of opportunities for derivatives DEXes to fill the exchange’s options as a non-KYC trading venue. The new KYC policy requires the users to submit personal information to the exchange by 2021. This represents a huge opportunity for the exchanges to cater to a broader customer base and to create a chance for DEXes to raised the chances and take over the non-KYC trading market.

The biggest derivatives exchange announced KYC for all users starting at the end of August. BitMEX is an exchange that boasts close to a trillion dollars in yearly volume and is a huge safe haven for whales that want to bypass KYC while trading millions of dollars in crypto. Most of the customers trade on the platform because of the no KYC policies and this move can act as a catalyst for the biggest exchange Binance to usurp futures and perpetual contract markets.

The CFTC probed BitMEX for letting the residents of the United States to trade on the platform without registering with the agency. The main financial market regulator, the Financial Conduct Authority warned the UK residents against the exchange and it is also alleged to have “providing financial services or products in the UK without permission.”  As the regulators are turning their attention to the exchange, crypto markets have to find a balance between the regulatory requirements and the crypto ethos in order for the industry to be sustainable in the long term.

Centralized exchanges such as BitMEX are extremely prone to regulatory action than their counterparts but despite the scrutiny, many platforms including Phemex, remain focused on serving traders. Phemex said:

 “Our slogan, ‘Trade Simple,’ represents our desire to deliver straightforward financial services to as many people as possible. As such, we will continue to welcome and empower traders from all over the world while ensuring that our services always remain accessible.”