Cryptocurrency exchange BitMEX says all the users on its platform are now completely verified.
Last year, the company was having issues with U.S. regulators. As a result, the firm set out to make sure it completes its customer verification program to stay off regulators’ scrutiny.
The BitMEX User verification program was introduced on 28 August 2020. It required BitMEX users to follow a four-step verification process similar to the verification of IDs on several cryptocurrency exchanges.
The verification process takes only five minutes to complete the entire process. Users were asked to upload the proof of address and IDs, take selfies, and provide answers to multiple-choice questions before they can complete the registration.
The user verification deadline was on December 9th, as only verified users are allowed to make transactions, including deposits and withdrawals on the platform.
After the December 9th verification deadline, more than $100 billion worth of transactions have been exchanged, as the firm confirmed that 100% of its users are now completely verified.
BitMEX said that with the completion of the verification exercise, the Seychelles-based company had become one of the world’s biggest derivatives exchanges with a completely verified user-base.
In 2019, the Commodity Futures Trading Commission (CFTC) started investigating BitMEX to determine whether U.S. traders are using its platform.
Then last year October, the regulatory body filed a case against BitMEX for allowing users who are not fully registered to trade on its platform.
After the case, the exchange decided to employ a new compliance chief and shaken up its executive team.
“We’re pleased to confirm that our User Verification Programme has been successfully implemented,” the company stated in its blog
Chief Compliance Officer of 100x Group Malcolm Wright commented on the development. He said BitMEX is now one of the few non-US-based crypto derivatives that have implemented the know-your-customer (KYC) policy for users to complete their transactions.
He said the achievement is a notable one because of the time and effort it takes to develop a vigorous compliance function that will meet international standards.
Chief executive Officer of the 100x Group Alexander Höptner also commented on the development. According to him, the user verification completion is a major milestone towards what the company hopes to achieve in the future. 100x Group is the holding structure for BitMEX.
He further revealed that it would help BitMEX become a high-performance platform with open-interest and top-level liquidity. Höptner says it places the company in an excellent position to increase both the institutional and retail investors.
It will further give users the chance to boldly trade crypto derivatives without sacrificing performance, liquidity, or security.
BitMEX’s technology has been regarded as the best in class because of its top tier product innovation, Wright added. As all users on the platform are completely verified, the company has shown its commitment to maintaining the legal requirements to operate in any international environment, he stated.