BitMEX precautionary measures for users

The BitMEX crypto platform has added three new jurisdictions to its list of trade restrictions – Bermuda, Hong Kong and Seychelles. In recent months, the exchange has also banned trading for users in the United States, Quebec Province in Canada, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea and Sudan.

The restriction of the registration is based on the system of geo-blocking of the IPs from these countries. HDR Global Trading Limited (HDR), the parent company of BitMEX, released an explanation:

“The increased involvement of the regulatory authorities with all the important players in the industry is not only to be expected, but it is welcome. The mission of good regulators is to make sure that honest citizens are not deceived. . . For this reason, we have decided to restrict access to BitMEX for users in jurisdictions where employees and HDR affiliated offices are located. “

Currently, bitMEX is registered in Seychelles and has offices in Bermuda and Hong Kong.

Precautionary measure

The decision is a precautionary measure, given that the exchange has come to the attention of the authorities. In July, the CFTC launched an investigation into allegations that US citizens used the trading platform. BitMEX is not licensed to provide services to US citizens, but they may have used VPNs to trade derivatives.

The exchange also received a notification from the British Advertising Standards Authority (ASA) regarding false advertising. The agency found that BitMEX “did not illustrate the investment risk” and “overstated the return on investment”.