The U.S. Commodity Futures Trading Commission (CFTC) is reportedly conducting an investigation into the operations of the Bitcoin Mercantile Exchange (BitMEX).
CFTC’s probe of the Seychelles-registered crypto derivatives exchange is being carried out to determine whether BitMEX violated any laws by allowing U.S.-based traders to access its platform.
BitMEX Warned About Operating Without License In North America
Sources familiar with the matter claim that the investigation into BitMEX’s activities may take several months to complete, because the Hong Kong-operated trading platform is not registered with the CFTC.
Last year, BitMEX’s management had to close user accounts of North American traders after receiving a warning letter from Canadian authorities. As noted in the letter, BitMEX had been operating as an unlicensed entity.
Notably, the U.S. has one of the most tightly regulated derivatives trading markets, in order to protect investors from the potential risks of lending borrowed financial assets.
This is getting quite serious. Let's summarize:
– Both BitMEX and Bitfinex are now investigated for servicing U.S. customers
– Bittrex and Poloniex started to geo-block tokens from the U.S.
– Binance pulled crypto-to-crypto trading out of the U.S. completely
— Larry Cermak (@lawmaster) July 19, 2019
BitMEX Processed Over $1 Trillion In Trades In Past Year
On May 11, 2019, BitMEX recorded more than $10 billion in 24-hour trading volume. BitMEX’s monthly trading volume (at that time) reached $86 billion. The dramatic surge in the exchange’s trading volumes may have been caused by a large number of short position liquidations.
On June 29, 2019, BitMEX CEO Arthur Hayes revealed via Twitter that the exchange had processed over $1 trillion in trading volumes in the past year. Notably, BitMEX’s 24-hour trading volume on June 29 almost reached $7 billion.