Categories: Bitcoin Business

Crypto Exchange BitMEX Under CFTC Investigation Over US Users: Bloomberg

Click here to view original web page at www.ccn.com
The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto exchange giant BitMex. | Source: YouTube/BitMEX

The US Commodity Futures Trading Commission (CTFC) has launched an investigation against the cryptocurrency exchange BitMEX, Bloomberg reported today.

Probe on US customers

According to Bloomberg, BitMEX is not registered in the United States, and the CFTC is probing whether the Seychelles-based crypto exchange has broken the rules by giving access to US users to trade on its platform.

As the regulator considers cryptocurrencies like Bitcoin as commodities and the CFTC has jurisdiction over futures and derivatives based on them, crypto exchanges have to comply with the country’s regulation to allow US customers to trade on their platforms.

According to Bloomberg, the CFTC’s probe is currently in progress with the regulator’s complete investigations often lacking allegations of misconduct.

“HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report,” a BitMEX spokeswoman said to Bloomberg.

BitMEX barring US customers amid regulatory scrutiny

CCN reported in January that BitMEX had initiated the close-down of exchange accounts of customers from the United States and the Canadian province of Quebec.

BitMEX – that had a turnover of $928 billion at the time – has pulled the plug on US and Canadian customers due to the increased regulatory scrutiny on unlicensed exchanges.

In an update to CCN’s article, a spokesperson for the cryptocurrency exchange stated that BitMEX had already banned all US traders from its trading platform in 2015 and it had closed the accounts of American and Canadian traders as part of the guidance it received from US regulators, including the CFTC.

Despite the ban, BitMEX CEO Arthur Hayes stated in an interview in January that users from banned jurisdictions like the United States can bypass the cryptocurrency exchange’s geoblock by using a VPN service.

‘Dr. Doom’ accusing BitMEX of profiting from terrorism

Economist Nouriel Roubini aka. “Dr. Doom” – who is one of the loudest critics of Bitcoin and cryptocurrencies – has accused BitMEX on making a profit by allowing terrorists and criminals to trade on its platform. Dr. Doom has also accused BitMEX of being “totally unregulated”.

“Hayes has denied this, but because BitMEX is totally unregulated, there are no independent audits of its accounts, and thus no way of knowing what happens behind the scenes,” Roubini wrote in an article on Tuesday.

Roubini – who had a debate with Hayes earlier this month in Taipei – had initiated his first attacks against the BitMEX CEO in June, stating that the crypto exchange’s newly published bitcoin derivatives volumes were fake.

How can one believe ANY of these figures when 95 percent of all bitcoin transactions on a typical exchange are fake? Fake-coins, shit-coins, fake-transactions, fake-pricing. The only true thing in crypto space is manipulation, pump n dump, front-running, wash trading, etc… https://t.co/i43cPwjFX2

— Nouriel Roubini (@Nouriel) June 26, 2019

While Roubini’s criticism is highly subjective and often fueled by anger – in light of the CFTC’s investigations against BitMEX – some of his accusations against the crypto exchange could be legitimate especially on the unregulated nature of the Seychelles-based service.

No wonder crypto gangsters set up shop in that cesspool island of government corruption. Ditto for the Seychelles where @BitMEXdotcom racket is domiciled. Cheaper to bribe officials in those island nations. But why is the @ecb allowing such scams in a Eurozone member state? https://t.co/q73CjloEhm

— Nouriel Roubini (@Nouriel) July 18, 2019

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

G7 To Investigate Bitcoin{BTC} And Other CryptoCurrencies

Source: Wikimedia The G7 meets next week to investigate regulations for Bitcoin and other cryptocurrencies. G7 To Discuss Bitcoin Next… Read More

48 mins ago

US Treasury Blackballs Bitcoin Addresses of Chinese Drug Kingpins

The US Treasury is blacklisting specific bitcoin addresses related to Chinese druglords. | Source: Shutterstock By CCN Markets : The… Read More

48 mins ago

Modex: How blockchain can solve the fake news problem

LONDON, UK - Media OutReach - 22 August 2019 -When Satoshi Nakamoto solved the Byzantine General's problem in 2008 by… Read More

48 mins ago

Unlocking the future of blockchain innovation with privacy-preserving technologies

The origins of blockchain as many are familiar with it today can be traced back to the Bitcoin whitepaper ,… Read More

48 mins ago

Maerki Baumann Why a Swiss private bank is embracing blockchain

Maerki Baumann decided it could not sit still and hope for the best. At a time of increasing pressure on… Read More

48 mins ago

World Bank picks up millions in latest blockchain bond move

In August of last year, the World Bank and the Commonwealth Bank of Australia (CBA) announced a new bond alternative… Read More

48 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More