BitMEX, one of the leading derivatives exchange platforms in the bitcoin ecosystem, will require its users to go through a mandatory personal data delivery process to trade. Among these data, questions about the origin of their funds stand out.
Through a statement, the exchange site notified this Friday that its “user verification program” will take effect on August 28. From that point on, the platform will require its users with personal accounts to go through a four-step process “similar to identification checks at many other cryptocurrency exchanges.”
Among the identification requirements, BitMEX includes an identity document with a user’s photo, proof of residence, and a selfie. Users will also need to answer a series of questions about where their funds come from and trading experience.
From the date the identification program begins, current users of the platform will have six months to comply with the identification requirements. As of February 12, 2021, “it will be mandatory that all BitMEX users have completed the verification process to continue operating on our platform”, the text adds.
The statement specifies that this program does not involve its corporate clients. These must undergo the verification process in force since mid-June of this year.
BitMEX: “Identification is important to build trust.”
In an ecosystem where defending the privacy is a must by bitcoin users, BitMEX supports its ad by claiming that it seeks an environment of trust. “These new controls will create a more reliable and secure business environment for all users,” the statement read.
On the other hand, the text indicates that these new requirements will allow the BitMEX support team to “reliably verifies the real owner of an account in the event of a dispute, hacking or incapacitation.”
To promote compliance with identification requirements, BitMEX plans to launch a trading tournament. Only users who have gone through the data delivery process will be able to participate in that tournament, the details of which will see the light in the coming weeks, according to the publication.
The firm CipherTrace exposed in late 2019 that most cryptocurrency exchange sites use very little or simply do not use KYC (Know Your Customer). But many platforms have increased their information requirements.
Others have chosen, on the contrary, to eliminate the option. Hodl Hodl, for example, disabled the KYC option of its platform in March of this year.
Through social networks, users have expressed their discomfort with the decision to require identification in BitMEX. Some have even declared that they will withdraw the funds they have on the platform.
BitMEX is among the highest volume derivatives platforms in the ecosystem. According to data from CoinMarketCap, BitMEX is the second derivatives platform with the highest volume of exchange in 24 hours, behind Binance. In the last period, BitMEX has moved more than 2,146 million dollars.
By Jenson Nuñez
