Regulation and compliance were once words that were far-related to the crypto industry but now terms that the space is gradually accommodating.
From the Financial Action Task Force (FATF) announcing a new set of rules for crypto platforms to largest crypto exchange Binance revealing it will soon stop allowing the U.S audience to access its primary platform for regulatory reasons.
This time, BitMEX, the second-largest cryptocurrency exchange by daily trading volume disclosed in a press release on August 19 that it will also shuffle operations on its platform in a bid to show that it is supportive of regulatory changes coming to the crypto industry.
Specifically, users who live in jurisdictions where BitMEX parent company, HDR Global Trading Limited (HDR) operates will lose access to the trading platform. These regions as per the release include Seychelles (where BitMEX is registered), Hong Kong and Bermuda (areas where BitMEX has offices and employees).
The exchange operator said that the new restrictions are a move to ensure the safety of user funds as well as the stability of the platform. BitMEX also pledged to introduce soon measures that will make their operations more transparent and easy to assess for both stakeholders and customers.
One move onlookers can expect from the crypto exchange in the short term is the release of “independent audits” of the company’s “insurance fund, market-making activities, and tradeable contract structure.”
BitMEX also said it looked forward to the coming era where crypto exchanges abide by clearly defined operation standards, provide adequate security for user funds, and publish independent and frequently audited reports about their financial reserves.
Meanwhile, the latest reviews to the BitMEX platform comes a few weeks after media reports confirmed that the U.S Commodity Futures and Trading Commission (CFTC) was investigating the platform. With that in mind, BitMEX likely made the alterations in line with requirements by the regulator or solely in anticipation of ongoing broader efforts to bring the industry under the regulatory grip.