CFTC to probe whether BitMEX broke rules by allowing Americans to trade

Cryptocurrency derivatives exchange BitMEX is facing a CFTC probe to determine whether it has broken rules by allowing US citizens to trade.

The news first appeared on Bloomberg, with the probe later being confirmed by Altana Digital Currency Fund CIO Alistair Milne on Twitter.

“The months-long CFTC probe is focused on whether BitMEX broke rules by allowing Americans to trade on the platform, which isn’t registered with the agency, said one of the people who asked not to be named discussing the investigation, which hasn’t been made public,” the report states.

Regulatory uncertainty has been heightened around BitMEX following the heated debate between the exchange’s CEO, Arthur Hayes, and ‘Dr Doom’ Nouriel Roubini.

Roubini stated that as the exchange is based in the Seychelles, it has effectively removed itself from global regulatory bodies.

BitMEX strictly states in its terms of service that US citizens are not permitted to trade on the platform. This rule was enforced in November 2018 when well-known analyst Tone Vays had his trading account terminated.

However, questions have been raised by the likes of Roubini, who stated that BitMEX simply doesn’t do enough from a KYC and AML standpoint.

Currently, there are guides littered across the internet that teach users “how to use BitMEX in the United States”, with a number of customers using VPNs.

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