Besides rebranding its compliance procedures, BitMEX also affirmed it is diversifying its services beyond the legacy derivatives product it is known for.

BitMEX, a Seychelles-based cryptocurrency and derivatives exchange, has reached a settlement deal with American authorities. According to the report, a total of $100 million has been agreed to be paid as a Consent Order entered into by American courts with about 5 separate entities working together as the BitMEX brand.

The settlement ends a multi-month investigation by the United States Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN). According to a CFTC release, the consent order also prohibits BitMEX from further violations of the Commodity Exchange Act (CEA) and CFTC’s regulations as charged.

“This case reinforces the expectation that the digital assets industry, as it continues to touch a broader pool of market participants, takes seriously its responsibilities in the regulated financial industry and its duties to develop and adhere to a culture of compliance,” said Acting Chairman Rostin Behnam. “The CFTC will take prompt action when activities impacting CFTC jurisdictional markets raise customer and consumer protection concerns.”

The settlement deal according to the Acting Director of Enforcement, Vincent McGonagle will help showcase that the “registration requirements and core consumer protections Congress established for our traditional derivatives market apply equally in the growing digital asset market. Cryptocurrency trading platforms conducting business in the U.S. must obtain the appropriate registration, and must implement robust Know-Your-Customer and Anti-Money Laundering procedures.”

BitMEX affirmed it had introduced a number of transformations in order to restore the positive image of the firm, including the overhauling of its KYC and compliance procedures.

BitMEX Settlement: A Sigh of Relief

With the settlement, American authorities will notably stay off the roof of the exchange, giving new Chief Executive Officer, Alexander Höptner a clear regulatory environment to steer the affairs of the digital trading platform.

“Today marks an important day in our company’s history, and we are very glad to put this behind us. As crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success,” he said, adding “We take our responsibilities extremely seriously, and will continue to actively engage with regulators around the world to ensure that we play a positive role in helping to shape the future of this extraordinary asset class.”

Besides rebranding its compliance procedures, BitMEX also affirmed it is diversifying its services beyond the legacy derivatives product it is known for. The firm is now looking to build its capacity in such areas as Spot trading, Brokerage, Custodial services, Information Products, and Academy. Notably, BitMEX made the round earlier this week by becoming the official crypto partner of Italian football giant AC Milan.

While the firm is now in the clear, the CFTC confirmed that its litigation against the company’s founders: Arthur Hayes, Benjamin Delo, and Samuel Reed is still ongoing.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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