One of the largest crypto derivatives exchange, BitMEX is currently under investigation by the US’s top regulator, CFTC. The trading platform is majorly known for the crypto derivatives trading feature.
CFTC Investigating BitMEX
The probe comes after the US’s Commodity Futures Trading Commission (CFTC) realizes exchange is enabling people to make big bets with little money down. With that being said, regulators want to make sure BitMEX has not followed any way to shatter rules set and allowed US residents to trade on the platform. As per the current law, residents from the United State is excluded using BitMEX’s services and regulators suspect that BitMEX allowed US residents to use its crypto derivative platform
This was first reported by Bloomberg, adding a person’s reference related to the matter. However, the details of ongoing investigation is still out of sight and regulators haven’t disclosed anything officially yet. When asked about a similar matter to BitMEX. a spokeswoman from the company declined to explain and stated that;
“HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report,”
BitMEX is a Black Hole for Bitcoin
However, there isn’t a full stop on this topic yet but as per analyst, this isn’t surprising though. According to eToro’s Senior Market Analyst, Mati Greenspan, BitMEX exchange is like a “black hole for Bitcoin”. In his daily newsletter, Mati states that CFTC’s investigation shouldn’t come as much of a surprise”.
This shouldn’t come as much of a surprise to anyone who’s been watching the space. I must admit that even I have several times been BitMEX Rekt. That place is like a black hole for bitcoin. Glad to see that someone is finally investigating them.
US’s regulators have long been examining diverse ways to monitor crypto space and to ensure it free from fraud, manipulations and other illicit activities.
As far as CFTC is concerned, the firm considers cryptocurrencies such as Bitcoin, commodities whereas setting jurisdiction over derivatives like futures based on cryptocurrencies. However, BitMEX isn’t registered with the agency to offer such products in the United States.
While regulators are raising concern over the type of service BitMEX offers, crypto skeptic Nouriel Roubini earlier bashed at BitMEX boss and stated it (BitMEX) “maybe openly involved in systematic illegality,
But on the other hand, in earlier report, BitMEX CEO, Arthur Hayes told Bloomberg that BitMEX will not allow such activities. he stated that;
“We continue to monitor all legal and regulatory developments around the world and will comply with all applicable laws and regulations; we reject any allegations of criminality, manipulation or unfair treatment of our customers, who are at the center of everything we do.”
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