Bitmex to restrict Ontario residents from using platform

Cryptocurrency derivatives platform, Bitmex announced that Ontario-based traders would no longer have access to their exchange from September 1, 2020

In a blog post on Monday, Bitmex announced that its customers based in Ontario, Canada, will no longer have access to their trading platform starting from next month. This means that Ontario traders on Bitmex will not be able to open a new trading position or increase their existing position effective from 00:00:00 EST, September 1, 2020

According to the trading platform, existing positions will run until January 4, 2021, at which point they will force-close the positions and request the traders to close them before the date. Ontario residents who wish to register on Bitmex for the first time after the stipulated date will not be permitted to do so. “Any such attempt to do so will be a breach of our Terms of Service,” the blog post added.

Bitmex claimed they were mandated by the state’s securities regulator, the Ontario Securities Commission, to cease their activities. The trading platform noted that it supports the efforts of regulators around the world in helping to establish standards for cryptocurrency products that would help spur the advancement of the new asset class. Bitmex concluded that it would “continue to work with the Ontario Securities Commission to support its aims for the Ontario market and will keep our Ontario-resident customers updated. If customers have any queries, please contact”.

This latest development comes as Bitmex seeks to become more compliant with regulatory agencies around the world. The introduction of “know-your-customer” (KYC) verification earlier this month shows that Bitmex wants to start operating by the book. However, this might lead to the exchange restricting its services in numerous other regions.

Bitmex barred US-based traders from its platform since 2015, and recently blocked users from Hong Kong, Bermuda and the Seychelles. The Eden Island-based cryptocurrency derivatives trading platform has come under fire numerous times for offering high levels of leverage to cryptocurrency traders. Traders on the platform can trade with leverage as high as 100x on its Perpetual Bitcoin / USD Perpetual Contract. The parent company of Bitmex changed its name to 100X, however, it claimed that the name wasn’t a reference to the leverage they offer.

The post Bitmex to restrict Ontario residents from using platform appeared first on Coin Journal.

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