BitMex to pay $100 Million Fine to CFTC and FinCEN

Per a blog post announcement, crypto derivatives trading platform BitMex has ended its 10-month long battle with the authorities, as it has agreed to pay a fine of $100 million into the coffers of the government.

The announcement revealed that the platform would be paying $50 million to the Commodity Futures Trading Commission (CFTC), while the other half will be going to the Financial Crimes Enforcement Network (FinCEN). However, no new information was revealed about the criminal charges filed by the Department of a Justice against the firm’s former executives.

The financial regulators had been investigating BitMex for the best part of a year for offering leveraged and unlicensed crypto products to people living in the US between 2014 and 2020, which is a violation of federal law. Apart from that, the regulators have also cited the ineffective Know-Your-Customer policy of the firm plus its inadequate Anti-money laundering system.

Alexander Höptner, BitMex’s CEO, while speaking on the new development said, “as crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success.” He also continued that the firm would continue to take extra measures in their cooperation with regulators around the world.

As part of its agreement with the regulators, BitMex is expected to refrain from offering futures or other types of crypto commodity contracts in the U.S. without registering with the CFTC or operating a swap trading facility. As part of the settlement, it must ensure it has adequate KYC procedures moving forward.

The exchange has also made efforts to ensure compliance with registration requirements as it quickly launched a compulsory verification process for all its users, initiated KYC Build-out, Hired a chief compliance officer, and added partners to boost its Anti-Financial Crime, Trade Surveillance, and AML Capacities and many other developments.

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