BitMex, one of the most active Bitcoin (BTC) trading platforms in the world with a total turnover of $928 billion to date, is pulling the plug on multiple trading accounts across the United States and in the Canadian province of Quebec due to regulatory restrictions and uncertainty in North America.
BitMex, A Crypto Exchange and Derivatives Trading Platform
BitMex is most popularly known for their Bitcoin futures trading where traders can trade on margin, which is trading with leverage. The platform also features a cryptocurrency exchange where traders can deposit Bitcoin (BTC) to buy and sell alternative cryptocurrencies.
The popular crypto exchange and derivatives trading platform is based in Hong Kong and is currently unregulated by any jurisdiction. Despite being unregulated, BitMex has managed to successfully and legally operate in countries around the world, with the exception of the United States due to their legal framework.
However, despite restricting U.S. traders from using the popular Bitcoin trading platform, many have gotten around this by trading on BitMex with the use of a VPN that re-routes their location.
BitMex Shuts Down Trading Accounts
Despite BitMex’s successful operation throughout North America, growing regulatory restrictions on the continent have forced BitMex to begin pulling the plug on all known U.S. trading accounts and those in Quebec as well.
According to reports in the South China Post (SCP):
The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.
It appears that the unregulated trading platform is not only taking action by shutting down trading accounts in North America but are also covering their backs by informing all users from restricted jurisdictions that trading with BitMex is prohibited.
BitMex Not Registered with AMF in Canada
BitMex is cracking down on U.S. trading accounts because they are simply prohibited from operating in the United States, but the trading platform is legally allowed to offer trading services in Canada.
However, the Canadian regulatory body Autorité des Marchés Financiers (AMF) recently informed the SCP that BitMex is not legally allowed to operate in Canada, stating:
BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.
Per the statement, BitMex is only required to shut down accounts in the province of Quebec. As for the rest of the Canadain provinces, BitMex trading accounts can remain operational for now.
With the tightening of cryptocurrency regulations across the continent and around the world, there is much uncertainty in the future of unregulated cryptocurrency exchanges and trading platforms.
Do you think BitMex will ever become a regulated Bitcoin trading platform? Will more unregulated and unauthorized crypto exchanges shut down trading accounts due to regulatory uncertainty? Let us know what you think in the comment section below.