OVERNIGHT CRYPTO MOVERS
CRYPTO STORY OF THE DAY
Last Week Bloomberg Released An Article That Described Seychelles-Based Crypto Platform BitMEX As Being Under Investigation By The US' Commodity Futures Trading Commission (CFTC) - The Episode Demonstrates Why Many Platforms Attempt To Avoid The US Market At All Costs And Why This Trend Will Likely Accelerate
BitMEX is a crytpo-settled derivatives platform based out of Seychelles and with offices internationally. The exchange hosts the World's most active BTC product in their XBT Perpetual swap which offers as much as 100x 'leverage' and on their most active day has traded more than 16B USD equivalent. The article states that the months-long CFTC probe has focused on whether or not US-residents have been utilizing the platform. BitMEX has always banned US participants, though in interviews CEO Arthur Hayes has noted that some have attempted to get around this policy by using Virtual Private Networks (VPNs). The article explicitly points out that most investigations by the CFTC do not lead to formal charges.
Takeaway: BitMEX has been obsessive about their policies of not allowing US residents to participate on their platform. We personally know of non US-residents simply having their computer on the internet in the US leading to accounts being suspended for precaution. The fact that BitMEX is still drawing CFTC investigation is exactly why they and many other platforms have chosen to avoid the jurisdiction altogether. This avoidance is now looking to also be extended to other US allies with forthcoming derivatives and some tokens now not being offered to Canadian residents and other regions platforms fear may mirror or support the US regulatory agenda. As a result, these residents are now unable to access or will likely lose access to at least 75% of the total liquidity in crypto.