The exchange informs users that they have two weeks to meet the KYC deadline.
Failure to update information on time will result in loss of checkout capability
The KYC (Know Your Client) requirement is one of the many steps BitMEX has taken to meet compliance standards.
The BitMEX derivatives platform has reminded users that they have two weeks to update their KYC (Know Your Customer) information. If the deadline is passed, users will not be able to withdraw funds or maintain positions.
The cryptocurrency derivatives platform Bitcoin Freedom reminded users on November 19 that they have two more weeks to meet the KYC deadline. Users who do not do so before December 4th will not be able to continue trading, maintain positions or withdraw funds.
Reminder – Two weeks to complete user verification: Complete verification by December 4, 2020 at 00:00 UTC to continue trading, hold positions open, and withdraw funds. We thank the users for their support. Learn more: https://blog.bitmex.com/important-user-verification-deadline-on-4-december-2020/
KYC at withdrawal? Why would you need to know your non-client who leaves and no longer trades?
It’s not correct
The community’s reaction was swift and harsh. Many Twitter users complained that the exchange prevented users from withdrawing their funds if they did not meet the conditions. One of the common questions was why BitMEX needed to know user details if they were already leaving.
BitMEX’s expedited KYC requirements are the result of multiple investigations and lawsuits. The exchange shortened its KYC deadline by two months after facing CFTC and DOJ action in October 2020.
The exchange has taken other steps to strengthen compliance, including adding the Refinitiv Toolset to its platform. This should help the exchange monitor illegal use of its platform. It also announced a monitoring partnership with the AML Eventus Systems platform.
For their part, the US authorities have stepped up their examination of the cryptocurrency space. The SEC has filed several lawsuits this year that have resulted in closings or settlements . Telegram was forced to shut down its blockchain project, while Kik settled his lawsuit with a $ 5 million fine.
BitMEX lawsuits rocked the platform
BitMEX has been working hard to implement the KYC rules since US authorities started legal action against it. The exchange has attempted to play down legal actions, saying the exchange will continue to operate normally. BitMEX founders also face charges, most notably CEO Arthur Hayes.
BitMEX is also facing legal action claiming its founders „looted“ $ 440 million after learning about the investigations. These allegations were dismissed by the exchange, which pledged to fight all lawsuits against her.