BitMEX announced plans to begin identity verification by 28 August. Users are expected to complete the process within six months.
BitMEX announced plans to introduce mandatory identity verification for all users. The identity verification program will begin on 28 August as traders will, among other things, be required to provide proof of whereabouts. With the latest developments, BitMEX is committed to providing users with a safer and more reliable trading environment.
The BitMEX trading platform allows investors to access the global financial markets using only bitcoins. At the moment, registration on BitMEX requires a name, email address, country of residence and password. However, the introduction of a new identity check will expand the requirements. In addition, all customers must complete identity verification no later than February 12, 2021.
BitMEX Announces Identity Verification
In the announcement, the company disclosed details of the requirements for the new identity verification, which consists of four steps:
“Individual users will be prompted to upload ID and proof of address, take selfies, and answer multiple multiple choice questions about the source of funds and trading experience ... Corporate accounts will continue to go through the existing verification process with our team ready to help them as quickly as possible. and more efficiently. "
BitMEX Chief Commercial Officer Ben Radcliffe said the company planned to implement the identity verification process earlier. He added that the company will also launch a "Significant Trading Tournament" for traders after they complete the verification process. Speaking to Cointelegraph, Radcliffe said:
“We prepared for this as it became necessary in order to launch a scalable and responsible platform for handling complaints. It is a building blockchain that allows us to grow and do business in the future. ”
In addition, Ben Radcliffe stressed that prior to the official announcement, some users had already voluntarily verified their identity. In addition, he added that the BitMEX user verification program should take about five minutes. With regard to the company's corporate clients, the commercial director explained that the company could add new features to simplify the process.
Previously, BitMEX launched new services for corporate clients on June 22. The program, dubbed "BitMEX Corporate", as reported in an ad, is a set of features and services that will offer better services to corporate customers who will also receive increased security and access to global corporate events.
BitMEX faces legal action
BitMEX recently faced a couple of lawsuits from BMA LLC and investors. In May, the company was charged with money laundering, market manipulation and cybercrimes. In a controversial lawsuit, BitMEX processes approximately $ 3000000000 billion in daily money transfers without permission. The plaintiff argued that this act was contrary to US monetary regulation.
BitMEX is currently the second largest cryptocurrency derivatives exchange with the largest open interest. In addition, Skew, a leading data analytics service provider, has revealed that it has nearly $ XNUMX billion worth of open Bitcoin futures contracts.