If you are one of those who were attracted to BitMex with registration that takes less than 30 seconds, this news can disappoint you. Time has passed when we could only enter email to trade.
The platform is going to launch a verification program at the end of this month. The clients will be required to verify their identities within six months from the day the program is launched.
The BitMEX cryptoexchange is introducing mandatory ID verification for its clients. A message posted on the company’s website says it will create a more reliable and secure environment for all its members.
In January 2019, the Fifth Anti-Money Laundering Directive entered into force in the EU, which tightened the requirements for the financial companies. Cryptoexchanges, which also fall under the directive, must register with supervisory authorities and strictly comply with AML/KYC requirements.
Although the parent company of BitMEX – HDR Global Trading is registered in Seychelles, its clients include European residents. Due to the fact that BitMEX has long ignored the requirements of the directive, the platform received a warning from the UK Financial Conduct Authority (FCA), so the exchange took measures after the reprimand from the UK’s financial regulator
The exchange explains the decision to launch a user verification program by the desire to “comply with developing international regulatory standards.” The company emphasizes that the process of verification significantly increases the actual security of customers. The specialists of the exchange will get the opportunity to confirm the identity of the current account holder in case of disputes.
The grace period will continue for 6 months, during which the customers have to upload selfies, the photos of documents that confirm the identity and address of residence. They will also have to answer questions about the origin of funds and trading experience. For corporate account holders, the identification procedure will not change.
The company promises to make the procedure easy and simple, but it won’t be a 30 seconds process any longer, which was a competitive advantage of the platform over its rivals.