BitMEX’s New CEO to Bring Spot Trading, Brokerage, and Custody Services to the Exchange
BitMEX, a popular crypto derivatives exchange, is expanding its services and products by introducing brokerage, spot trading, and custodial services.
In an interview with Bloomberg, BitMEX new CEO Alexander Hoptner revealed his plans to revitalize the embattled outfit. Hoptner explained,
“We have to make up our mind very fast how we want to approach these aspects and then see whether we could find a partner or whether we build something or buy something.”
The new CEO also revealed that the firm is looking forward to mending its relations with the regulators globally. Hoptner explained that his firm is reaching out to regulators in places where they operate and places they are yet to open operations. He said,
“We are approaching regulators where we are currently present, but we will also reach out to regulators where we are not.”
Hoptner served as the head of the German stock exchange outfit Börse Stuttgart before joining BitMEX. Hoptner replaced Arthur Hayes, the founder of BitMEX, following lawsuits against him and others on money laundering and violation of CFTC rules. Currently, US prosecutors are engaged in talks over a surrender agreement with Hayes, and it's expected that the ex-executive could surrender as early as next month as per recent court documents.
According to the court documents, a co-accused Ben Delo, BitMEX co-founder, is set to be arraigned in a New York court. US authorities have also instigated the extradition process against BitMEX’s former head of business development, Greg Dwyer.
BitMEX was started in 2014 and became a popular crypto derivative platform for offering 100x leverage on its futures instruments. However, the firm has faced a backlash for providing sophisticated financial futures instruments with none or very few regulatory oversights.
The pursuit to enter the spot market makes sense as the firm has lost a huge chunk of its market to companies like Huobi, Binance, and OKEx. Also, there has been an influx of institutional investors in the market, and demand for brokerage and custodial services is likely to surge in the near future.