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BitMEX, one of the leading derivatives exchange platforms in the bitcoin ecosystem, will require its users to go through a mandatory personal data delivery process to trade.Among these data, questions about the origin of their funds stand out.
Through a statement , the exchange site notified this Friday that its “user verification program” will come into effect on August 28.From that moment, the platform will require that its users with personal accounts go through a four-step process “similar to ID checks at many other cryptocurrency exchanges” .
Among the identification requirements, BitMEX includes an identity document with a user’s photo, proof of residence and a selfie.Users will also have to answer a series of questions about the origin of their funds and experience in the trading .
From the date the identification program begins, current users of the platform They will have 6 months to comply with the identification requirements .As of February 12, 2021 “it will be mandatory that all BitMEX users have completed the verification […] in order to continue operating on our platform ”, the text adds.
The statement specifies that this program does not involve its corporate clients.These must undergo Verification process in force since mid-June of this year.BitMEX: “identification is important to build trust”
In an ecosystem where privacy is defended by bitcoiners, BitMEX defends its ad claiming to seek an environment of trust .“These new controls will create a more reliable and secure business environment for all users,” the statement read.
“Today, user identity verification is increasingly expected to meet evolving international regulatory standards, and is an important part of building trust in the cryptocurrency ecosystem.”
BitMEX
On the other hand, the text indicates that these new requirements will allow the BitMEX support team “to reliably verify the real owner of an account in the event of a dispute, hacking or incapacitation.”
To promote compliance with identification requirements, BitMEX plans to launch a tournament of trading .
Only users who have gone through the data delivery process will be able to participate in that tournament , details of which will be revealed in the coming weeks, according to the publication.
BitMEX is among platforms derivatives with greater volume in the ecosystem.According to data from CoinMarketCap , BitMEX is the second derivatives platform with the highest trading volume in 24 hours, behind Binance.
In the last period, BitMEX has moved more than 2,146 million dollars.BitMEX is the second largest 24-hour trading volume derivatives platform, according to CoinMarketCap.
Source: CoinMarketcap
Through social networks, users have expressed their discomfort with the decision to require identification in BitMEX.Some have even declared that they will withdraw the funds they have on the platform.Withdrawing what little I have left in #Bitmex .
– Sativa Nakamoto (@sativanakamoto) August 14, 2020
The firm CipherTrace exposed in late 2019 that most cryptocurrency exchange sites use very little or simply do not use KYC (Know Your Client).But many platforms have increased their information requirements.
Others have chosen, on the contrary, to eliminate the option.
Hodl Hodl, for example, disabled the KYC option of its platform in March of this year, reported CriptoNoticias at that moment.Share this:.
