Cryptocurrency derivatives exchange BitMEX is accelerating the rollout of its User Verification Programme for its customers, which means they all must be fully verified by Nov. 5, 2020, to continue trading on the platform.
Once the deadline is over, unverified users won’t be able to open new positions. Moreover, from Dec. 4, 2020, they won’t be able to withdraw funds until verification is completed.
Already, a “significant” amount of users who represent over 50% of the exchange’s volume have successfully completed the onboarding process, reads the official announcement.
First introduced in late August, the program is a four-step process that requires individual users to upload a photo ID and proof of address, take a selfie and answer a bunch of multiple-choice questions about the source of funds and their trading experience.
According to the exchange, it has been the recent events, BitMEX and its founders were criminally charged for not following anti-money laundering measures, that “underscored the requirement for market operators to implement robust and compliant KYC programs.”
The news came when Bitcoin has exceeded $12,000 and is enjoying a burst of green.
Just last week, the exchange hired Malcolm Wright as the chief compliance officer of 100x Group, the parent company of BitMEX.
“For me, compliance is non-negotiable, and a prerequisite for exchanges to be embraced by regulators and institutional investors alike,” said Wright in a press release. He further shared that the vision is “to play a lead role in shaping how this industry collaborates with regulators to ensure everyone can safely avail of digital markets.”
The founders Arthur Hayes, Samuel Reed, and Ben Delo have already stepped down from their positions as CEO and CTO, with Vivien Khoo acting as the interim chief executive officer.