According to journalists from Bloomberg, American regulators suspect BitMEX to permit Americans to use its platform without a license.
The Commodity Futures Trading Commission(CFTC), a commission responsible for cryptocurrency-based derivatives started taking action in investigating the case two months ago.
BitMEX is a crypto exchange and trade platform that is especially popular in Asia offering its users the possibility to stack a good sum of money out of relatively modest investments by leveraging the amount of the initial deposit. Coinmarketcap’s numbers indicate that it has one of the highest turnover volumes.
Although registered in Seychelles, Africa, BitMEX’s main office is in Hong Kong, and it has an office in San Francisco. It automatically filters Americans out of the network since it still lacks the authorization to serve the American market. American regulators are adopting a hostile attitude towards cryptocurrencies inspiring them to fend off any cryptocurrency derivative getting in contact with US residents, just like what happened with Bitfinex and Tether.
Despite the automatic filter blocking off Americans, US clients can still easily get around the barrier by using Virtual Private Networks(VPN) that deludes the computer into thinking it is located in another country.
BitMEX has already shown intentions to conform with these regulations and to close all accounts owned by US residents and has officially announced it between the end of 2018 and the start of 2019. Since then, CFTC has always been following its trails and the affair remained private until it was revealed by Bloomberg.
When interrogated by Bloomberg about his recent argument with Nouriel Roubini and the campaign he raised against the company, Arthur Hayes, co-founder and CEO of BitMEX affirmed that they will keep up with all worldwide legal and regulatory developments and will make sure to conform to all applicable laws.
Meanwhile, the results of CFTC’s investigation are still to be awaited.