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BitMEX revealed plans to begin ID verification by the 28th of August. Users are expected to complete the process within six months.
BitMEX has announced plans to mandate ID verification for all users. The ID verification programme will begin on the 28th of August as traders will have to provide proofs of location, amongst other things. With the latest development, BitMEX aims to provide a more secure and reliable trading environment for users.
BitMEX trading platform enables investors to have access to the global financial markets using only Bitcoin. At the moment, registration on BitMEX requires a name, email, country of residence, and password. However, the implementation of the new ID verification will extend the requirements. Also, all customers must complete the ID checks on or before the 12th of February, 2021.
BitMEX Announces ID Verification
In the announcement, the company revealed details on requirements for the new ID verification checks, which consists of four steps:
“Individual users will be prompted to upload ID and proof of address, take a selfie, as well as answer a few multiple choice questions about source of funds and trading experience…Corporate accounts will continue to go through the existing verification process, with our team ready to guide them through as quickly and efficiently as possible.”
The BitMEX commercial director, Ben Radclyffe, said the company had plans to introduce the ID verification process before now. He added that the company will also launch a “Significant Trading Tournament” for traders after they complete the verification process. Speaking to Cointelegraph, Radclyffe said:
“We’ve been getting ready for this, as it’s become necessary in order to run a scalable, responsible, complaint platform moving forward. This is a building blockchain for us to grow and do business in the future.”
In addition, Ben Radclyffe underlined that before the official announcement, some of the users already verified their identities voluntarily. Also, he added that BitMEX’s user verification programme should only take about five minutes to complete. Referring to the company’s corporate customers, the commercial director explained that the company may add new features to make the process easier.
Before now, BitMEX launched new services for corporate customers on the 22nd of June. Called “BitMEX Corporate” as revealed in an announcement, the program is a set of features and services that will offer better services to its corporate clients who will also enjoy enhanced security and access to global corporate events.
BitMEX Faces Lawsuit
BitMEX recently faced a couple of lawsuits from BMA LLC and investors. In May, the company was accused of money laundering, market manipulation, and cybercrime. According to the controversial lawsuit, BitMEX has been processing about $3 billion in daily money transfers without a permit. The plaintiff claimed that this act is against the US monetary regulation.
Presently, BitMEX is the second-largest cryptocurrency derivatives exchange by open interest. Also, leading data analytics service provider, Skew, showed that it has almost a billion dollars in open Bitcoin futures contracts.