DOJ and CFTC File Charges Against BitMEX

The US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have filed charges against BitMEX.[1]

BitMEX and its founders, including the popular talking head, CEO, and co-founder Arthur Hayes, have been accused of operating an unregistered trading platform as well as violating CFTC rules, including anti-money laundering and know-your-customer regulations.

Although this has some bearish implications in terms of what it means for other entities in the space not following proper KYC rules, and although it has some bearish implications in terms of BitMEX being a once very popular exchange, there are some silver linings.

  1. BitMEX had already planned a change prior to this and had lost some of their previous volume (so the impact isn’t as big).
  2. Part of the reasoning behind the charges was that digital currency was important and exchanges needed to follow rules and not get an unfair advantage by breaking rules.

There are current derivatives exchanges like Bakkt that follow KYC and AML rules, and spot and margin exchanges like Coinbase, while BitMEX had long been known to skirt the rules. So it isn’t a no to the space, it is a no to certain practices within the space. That said, it is a pretty hard “no.”

Article Citations
  1. CFTC, Department of Justice file charges against owners of crypto derivatives exchange BitMEX.

Author: Thomas DeMichele

Thomas DeMichele has been working in the cryptocurrency information space since 2015 when was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...

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