{"id":149040,"date":"2021-01-07T13:00:19","date_gmt":"2021-01-07T10:00:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/after-know-your-customer-debacle-bitmex-reports-100-of-users-are-verified\/"},"modified":"2021-01-07T13:00:19","modified_gmt":"2021-01-07T10:00:19","slug":"after-know-your-customer-debacle-bitmex-reports-100-of-users-are-verified","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/after-know-your-customer-debacle-bitmex-reports-100-of-users-are-verified\/","title":{"rendered":"# After Know Your Customer debacle, BitMEX reports 100% of users are verified"},"content":{"rendered":"

“# After Know Your Customer debacle, BitMEX reports 100% of users are verified <\/strong>”
\n<\/p>\n

BitMEX has announced<\/a> the completion of its user verification program, becoming one of the largest crypto trading platforms with a fully certified customer base.<\/p>\n

As part of the process to verify its entire use base, BitMEX says open positions held by unverified accounts have been closed.<\/p>\n

Back in Aug. 2020, the platform revealed plans to undertake a comprehensive user identity verification exercise. The move came amid increasing regulatory scrutiny over the platform’s notoriously lax Know Your Customer, or KYC, policies.\u00a0<\/p>\n

As previously reported by Cointelegraph, the United States Commodity Futures Trading Commission\u00a0charged BitMEX for illegally operating a derivatives trading desk. The New York District Attorney also brought up criminal charges against some of the company\u2019s principal actors including former CEO Arthur Hayes.<\/p>\n

In response, BitMEX announced plans to revamp its Anti-Money Laundering and trade surveillance protocols in November 2020. According to Thursday\u2019s announcement, user verification has been mandatory for deposit, trading and withdrawal functions since early December 2020.<\/p>\n

As part of the announcement, BitMEX also noted that $100 billion has been traded on the platform since achieving full user verification status.<\/p>\n

BitMEX CEO Alexander H\u00f6ptner said that the move was a major step in becoming a high-performance platform:<\/p>\n

\u201cIt places us in an advantageous position to capitalise on the surge of users \u2013 both retail and institutional \u2013 who are seeking a platform on which to trade crypto derivatives confidently without sacrificing security, liquidity, or performance. It marks a bright start for BitMEX in 2021.\u201d<\/p><\/blockquote>\n

H\u00f6ptner, the former CEO of German stock exchange Borse Stuttgart GmbH replaced Hayes as BitMEX CEO back in Dec. 2020.<\/p>\n

BitMEX transitioning to full user KYC status offers a glimpse of government regulators’\u00a0increasing level of scrutiny for crypto exchanges. Indeed, gone are the days of the cryptocurrency \u201cWild West\u201d where platforms operated with little to no oversight.<\/p>\n

With regulators demanding stricter compliance measures, attention app<\/a>ears to be shifting to decentralized exchanges, or DEXs, which saw a 1,000% spike in trading volumes back in Q3 2020.\u00a0<\/p>\n

Some of these decentralized platforms are now offering margin trading with the added advantage of zero KYC steps to ensure anonymity. Noncustodial crypto exchange ShapeShift has even transitioned to becoming a DEX onramp, ditching KYC for its users in the process. <\/p>\n