BitMEX has announced that the deadline of the recent Know Your Customer (KYC) verification exercise which was initially scheduled to end in February 2021 has now been moved to November 5.
In a bid to finish up the Know Your Customer (KYC) verification program before the end of the year, the crypto exchange company has called on all its customers to make use of the window and register.
The company previously stated that customers were given a grace period until February 2021 to register to continue trading on the platform. With the enforcement of the new policy, the deadline has been moved back to November 5.
Users who fail to register would be barred from opening new trades
Users that fail to register and complete the KYC within the time frame stated would not be allowed to open any new trades, the company said. Furthermore, the company has said that it will begin a clampdown on users with unverified accounts.
The change in the deadline is not surprising as the company are currently involved in a legal battle with the US Department of Justice and the Commodities Futures Trading Commission.
While the DoJ is now suing BitMEX for a violation of the Bank Secrecy Act, the CFTC claims that the exchange is not a registered platform and has violated several of their regulations.
According to both the DoJ and the CFTC, the absence of the KYC features on the exchange is the major reason why they are gunning for the exchange. The legal sanctions were said to have been communicated to BitMEX on October 1, days after the outfit announced its KYC programme.
Before the mandatory KYC announcement, a user can sign up on the platform and begin trading instantly with just his email address and adding funds to his account.
BitMEX crypto exchange undergoes leadership overhaul after the arrest of four executives
BitMEX has officially changed its leadership structure following the arrests of its top officials. It is no longer news that four executives were arrested in the firm earlier this month. The operator of the crypto exchange, 100x Group, was said to have appointed an interim CEO to replace the currently incarcerated CEO.
Replacing former CEO, Arthur Hayes is the new incoming interim CEO, Vivien Khoo. In a recent statement by BitMEX crypto exchange, they noted the importance of their clients complying with this directive.
Presently, the firm has confirmed that about 50% of its users have complied and have undergone the mandatory KYC verification.
“Recent events have underscored the requirement for market operators to implement robust and compliant KYC programmes. Since announcing our User Verification Programme, a significant amount of our users representing over 50 percent of our volume have completed the onboarding process, giving us the confidence to bring forward our cut-off date,” the firm said.
It is not yet clear if the regulatory bodies would soften their stance on BitMEX crypto exchange if their users complete the verification before the deadline date.