Crypto Derivatives platform BitMEX has reminded users that they have two weeks to update their KYC (Know-Your-Customer) information. If the deadline is missed, users would not be allowed to withdraw funds or maintain positions. BitMEX users who fail to do so by Dec 4 will not be able to continue trading, maintaining positions, and withdrawing funds. Many from the crypto community complained about the exchange preventing users from withdrawing their funds if they did not meet the requirements.
BitMEX shortened its KYC deadline by two months.
The exchange shortened its KYC deadline by two months after facing CFTC and DOJ action in October 2020. The crypto exchange accelerated KYC requirements are a result of several investigations and lawsuits. The crypto derivatives exchange has taken other steps to boost compliance, including adding the Refinitiv Toolset to its platform. This is expected to help the exchange monitor illegal usage of its platform. It also announced a surveillance partnership with AML platform Eventus Systems. The U.S. authorities have also stepped up their examination of the cryptocurrency space in recent times.
Reminder – Two Weeks to Complete User Verification: Complete verification by 4 December 2020 at 00:00 UTC in order to continue trading, maintaining open positions, and withdrawing funds. We thank users for their support. Read more: https://t.co/g42Bx7y5I4
— BitMEX (@BitMEX) November 20, 2020
U.S. authorities are investigating the crypto exchange.
The latest lawsuit against BitMEX is brought by Păun Gabriel-Razvan, a cryptocurrency trader and an owner of a crypto news aggregator. The allegations are scathing, calling CEO Arthur Hayes, Delo, and Reed “notorious fraudsters, who have been criminally charged with felony money laundering related offenses by the U.S. Department of Justice and two of whom are currently fugitives from U.S. law enforcement.” The latest lawsuit claims that in launching BitMEX, the defendants intentionally sidestepped mandatory financial controls and refused to implement any KYC (Know Your Customer) or AML(Anti-Money Laundering) checks. Now the crypto exchange has reduced the deadline for KYC implementations by two months.