Regulatory crackdown on crypto exchanges seems to be the new trend now. While the XRP-SEC lawsuit continues, other crypto-based institutions settled litigations.
Crypto derivatives exchange BitMEX reached an agreement with the U.S Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN). As per the deal, BitMEX agreed to pay as much as US$100 million to resolve the charges.
The CFTC had charged the company and several executives, including then-CEO Arthur Hayes, over operating an unregistered trading platform and violating know-your-customer and AML requirements.
According to the official release Commodity Futures Trading Commission published, stated that
However, the order issued by the court forbids the crypto platform from “further violations of the Commodity Exchange Act (CEA) and CFTC’s regulations”. Acting Chairman of the CFTC Rostin Behnam said:
Alexander Höptner, Chief Executive Officer of BitMEX had to say on the same,
A new era for BitMEX?
BitMEX in a series of tweets highlighted the importance of “gaining trust”. The company stated that KYC compliance, AML, and other tools were necessary. One of the tweets stated:
“Over the past year, we’ve built this. And we’re currently seeking a license in several jurisdictions”