The CFTC is probing the crypto exchange BitMEX for reportedly providing suspicious services to American traders as noted in the altcoin news reports.
According to the reports, an anonymous source noted that the United States regulatory watchdog is investigating the popular bitcoin exchange and says that the probe centers around BitMEX are allowing US traders on the platform. BitMEX is not a CFTC-registered platform but it is still illegal for Americans to trade the crypto derivatives that are noted on the bitcoin exchange. The regulatory ambit over crypto for the CFTC came after a federal ruling back in 2018 when it declared cryptos to be commodities. Because of this, the Commission now has jurisdiction over any place where the crypto-based derivatives might intersect with the United States traders even the platforms that are based abroad. The HDR Global Trading Limited, which is the owner of BitMEX did not comment on any media reports or about the ongoing investigations by the government agencies.
The terms of service of the exchange do not include a list of restricted jurisdictions and apart from the United States, some of the other countries banned are Iran, Syria, Cuba and North Korea. There are also some reports of users that show how their accounts got terminated on the platform based on the suspicion that they were only US customers. Tone Vays for example, tweeted in 2018 saying that BitMEX shut down his account for the same reason and this is why the CFTC is probing the crypto exchange:
‘’Just got my @BitMEXdotcom account terminated on suspicion of being a US Citizen. Anyone else find the timing of this odd?
The 900+ affiliates that accounted for half my income r gone going forward.
After #Unconfiscatable Conf expect prices on all services offered by me to rise.’’
As noted in the latest cryptocurrency news became the largest crypto exchange under investigation in the United States based on the suspicion of doing business in America. Exchange such as Poloniex and Bittrex are massively adopting the know-your-customer protocols in order to avoid sharing the same destiny as Bitmex as noted in the reports previously.
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