The United States government regulator of Commodity Futures Trading Commission(CFTC) in the course of its investigative activities against illegal practices in cryptocurrency space started to probe BitMEX crypto trading platform- which is known for offering up to 100x leverage while trading Bitcoin and other cryptocurrencies. Bloomberg, the mainstream media published the news on July 19thmorning, citing the sources have informed the publication.
BitMEX Cryptocurrency Exchange, Seychelles, and US
Reportedly, the unnamed sources familiar to the updates mentioned that CFTC wants to investigate whether the Seychelles-based global cryptocurrency exchange BitMEX, providing services to the U.S. traders to invest in cryptocurrencies or not.
On July 19, Tim Culpan, technology columnist at Bloomberg through his tweet mentioned that “U.S. regulator probing BitMEX on client trades.” Further, the tweet also indicating the steps have laid down by the overseers after two weeks of @Nouriel v @CryptoHayes Tangle in Taipei. However, the details regarding investigation haven’t yet validated neither by CFTC nor by BitMEX.
BitMEX Cryptocurrency Exchange CEO Arthur Hayes and Crypto Derivatives
Nouriel Roubini is a strong critique of cryptocurrencies. On July 16, the NYU professor criticized BitMEX and its CEO, Arthur Hayes, mentioning that, “BitMEX- the trillion-dollar exchange of crypto derivatives business model involves peddling to “degenerate gamblers” (meaning clueless retail investors) crypto derivatives with 100-to-one leverage.”
It is important to mention for Koinpost readers about the U.S. regulators’ stance on cryptocurrency trading activities associated with BitMEX. As per the current laws, the Americans are not allowed to trade digital assets or any other crypto-related financial services like futures and swaps while using BitMEX trading platform because the company is not registered (unregulated) under the regulatory authority as per the structure. However, it has come to the notice of the regulators that people are still using BitMEX platform by using geo-blocking technology and dodging the rules to trade boundlessly.
Tags: BitMEX, Cryptocurrency Exchange Trading, CFTC, U.S. Regulations, Cryptocurrency Regulations, NourielRoubini, Mainstream Media, Bloomberg.