íàçâàíèå

Bitcoin Exchange BitMEX Under CFTC Investigation: Bloomberg Insiders

Bitcoin Exchange BitMEX Under CFTC Investigation: Bloomberg Insiders

BitMEX in The Firing Line

BitMEX, the leading Bitcoin derivatives platform, is purportedly under investigation. Per a Bloomberg report released a number of hours ago, the Seychelles-based exchange, which also has a luxurious office in Hong Kong, the cryptocurrency platform is being investigated by the U.S. Commodity Futures Trading Commission (CFTC).

The financial regulator, which presides over most Bitcoin-related vehicles, is reported by insider sources is looking into if BitMEX has been knowingly allowing American users to trade on its platform. This is presumably in response to the exchange’s sudden spike in volume that came alongside this bull market, with it processing over $1 trillion worth of volume in the past year. Both the CFTC and BitMEX were rather quiet on this whole purported situation. A spokesperson of the Bitcoin exchange told Bloomberg:

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.

It is important to note that this rumored CFTC investigation may be unfounded. Arthur Hayes, the chief executive of the platform, has explained that it removes anyone found in violation of BitMEX’s terms of services, which includes a clause about the trading of its crypto derivatives in certain regions (including the U.S. and Quebec). Though, users can bypass these IP checks through virtual private networks, which have become somewhat of a given/no-brainer for tech-savvy Bitcoin investors.

Nouriel Roubini Vindicated

This Bloomberg report has somewhat vindicated Nouriel “Dr. Doom” Roubini, the famous Great Recession soothsayer that has turned his sights on the cryptocurrency industry. As detailed by this outlet, the economist and Stern School at New York University professor has been bashing Hayes and his platform for a while now, calling it a platform that takes money from “retail suckers”.

In fact, Roubini even took to the stage, debating Hayes earlier this month about BitMEX’s practices and the future and validity of Bitcoin and the cryptocurrency space at large. During that spat, the economist bashed the exchange for being based in Seychelles and not complying by U.S. regulations. This seeming CFTC investigation, which comes alongside the U.K.’s Financial Conduct Authority proceedings to ban cryptocurrency derivative products entirely, is presumably been a sight for sore eyes for Roubini.

U.S. Regulators Don’t Like Bitcoin, and BitMEX By Extension

Even if this rumor is false, one thing is for certain: U.S. regulators and lawmakers are starting to crack down on this industry. Just look to the cases laid out by The Block’s Larry Cermak below, which involves some of the biggest cryptocurrency exchanges in the industry.

These seem to be preemptive responses to an impending crackdown, which have been hinted at by President Donald Trump and Treasury Secretary Steven Mnuchin.


Photo by Ben Rosett on Unsplash

The post Bitcoin Exchange BitMEX Under CFTC Investigation: Bloomberg Insiders appeared first on Ethereum World News.

19.07.2019 / 10:10 43
CFTC Probes Bitcoin Exchange BitMEX CFTC Probes Bitcoin Exchange BitMEX
The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing bitcoin exchange platform BitMEX over suspicions of providing service to
US Regulator to Probe BitMeX Cryptocurrency Exchange: Bloomberg US Regulator to Probe BitMeX
The US Commodity Futures Trading Commission is going to investigate cryptocurrency derivatives exchange BitMEX, according to sources cited by
BitMex Reportedly Losing a Large Numer of Users due to Regulatory Pressures from North America BitMex Reportedly Losing a Large Numer
BitMEX, the second largest Cryptocurrency Exchange by Reported Trading Volume and the most important exchange of Bitcoin Futures in the world, has
Hong Kong Crypto Exchange BitMex Shutting Down Trading Accounts in the US and Quebec Hong Kong Crypto Exchange BitMex
The Hong Kong-based bitcoin futures exchange BitMex, is pulling the plug on trading accounts in the US and in the Canadian province of Quebec amidst
BitMEX Appoints Hong Kong Regulator to Position of Chief Operating Officer BitMEX Appoints Hong Kong Regulator to
In an effort to help them navigate the global regulatory landscape, BitMEX, one of the planet’s largest cryptocurrency exchanges, has appointed
Bitcoin Trading Platform BitMEX Hits 1 Million BTC in Daily Volume [Again] Bitcoin Trading Platform BitMEX Hits 1
Bitcoin investors might be suffering under the weight of one of the asset’s heaviest-ever bear markets, but for cryptocurrency derivatives exchanges
Comments (0)
Add a comment
Comment on