BitMEX that was charged by the United States Government and a regulator for conducting unregistered trade practices has begun its compulsory identity verification for customers to verify by November 5, three months before its original deadline, beginning of February.
A commercial director of the trade’s parent firm, 100x Group, Ben Radclyffe in an interview with CoinDesk stated that the identity verification process has become an industry trend. However, the firm’s plan to change the deadline from February 2021 to November 2020 follows this trend and internal plans the trade has prepared for over a year with a great number of resources invested into it. Further, Radclyffe presenting the exchanging activity of tens of thousands of accounts, stated that more than half of BitMEX’s current exchanging volumes come from verified accounts.
Wright noted BitMEX aims to utilize its stimulated identity verification program including some other corporate initiatives and Wright’s wisdom as chair of an anti-money laundering working for the community at Global Digital Finance, to become an industry leader in the initiatives made for identity verification.
The well-known freewheeling BTC derivatives trade declared compulsory identity verification for all, in August. Although, less than 2 months later charges were filed against the Commodity Futures Trading Commission (CFTC) and the trade by the U.S Department of Justice (DOJ), due to this, almost 30% of its BTC amount was withdrawn by the users.
Radclyffe noted to CoinDesk, after December 4, BitMEX will start reviewing remaining open positions on accounts that are not verified and communicate the account holders. However, the funds will be recoverable and eligible for withdrawals after the verification process.
By December 4, all accounts need to be verified to opt for withdrawals from the trade, also, under the stimulated time by 0:00 UTC on November 5, all BitMEX exchangers and individuals need to be verified before opening or increasing new positions.