Commodity Futures Trading Commission (CFTC) Announce Yesterday, BitMEX, a cryptocurrency exchange operating in the United States from November 2014 to October 2020, was ordered to pay $100 million for violating multiple regulations.
BitMEX was accused of being a designated contract market, swap execution tool, and futures commission merchant, without being properly registered with the CFTC, allowing US users to conduct various crypto-related transactions.
The CFTC stated that BitMEX also violated its regulations, “failed to implement the Customer Information Program (CIP) and Know Your Customer (KYC) procedures that can identify Americans using the platform, and failed to implement adequate anti-money laundering (AML) procedures. ) plan.”
U.S. Department of the Treasury Financial Crime Enforcement Network (FinCEN) Add to More complaints list. FinCEN stated that BitMEX “failed to report certain suspicious activities that occurred on its cryptocurrency exchange”.
FinCEN stated in its press release that these “intentional failures expose financial institutions to greater risks of dealing with money launderers and terrorist financiers, including non-compliant exchanges in high-risk jurisdictions, ransomware attackers and Dark Web Market”. This is not just a pointless guess.
FinCEN stated that “BitMEX has conducted transactions worth at least US$209 million with known darknet markets or unregistered currency service companies that provide hybrid services”, allowing transactions “involving high-risk jurisdictions and suspected fraudulent schemes”, and “At least 588 specific suspicious transactions are not reported correctly.”
BitMEX solves these problems by banning U.S. customers from using its platform-any visiting company website The top of the homepage from that country/region will display a prominent “BitMEX trading not available in your region” warning.
The CFTC also stated that BitMEX “no longer maintains any operational or business functions in the United States, except for limited personnel who perform technical, system maintenance, and security functions, all of whom are not directly or indirectly involved in marketing or soliciting customers” as June 30 .