Bitmex derivatives KYC program announced! Bitmex derivatives KYC will be required by all users through dik pik screening starting in two weeks.
“We will be launching our User Verification Programme at 00:00 UTC on 28 August 2020, where all customers will be asked to complete ID checks within the next 6 months.”
The exchange says “user identify verification is increasingly expected in order to meet evolving international regulatory standards.” The rational behind the statement – they want information as to where you got your money from and where by stating:
“The User Verification Programme will require individual users to go through a four step process…. Individual users will be prompted to upload a photo ID and proof of address, take a selfie, as well as answer a few multiple choice questions about source of funds and trading experience.”
“Corporate accounts will continue to go through the existing verification process, with our team ready to guide them through as quickly and efficiently as possible.”
Bitmex is just the latest exchange to require personal home addresses – this will alienate citizens from countries that don’t have postal addresses.
The rise of DeFi exchanges makes it possible for people to gamble on derivatives without risking their personal home addresses, however, and Bitmex will undoubtedly alienate their customer base because of their KYC insistence.
However, it is important to note that Bitmex has the advantage of liquidity over other DeFi exchanges. However, the rising cost of Gas via ETH is becoming problematic for DeFi exchanges. So there will be give and take. It should be interesting to see how this develops.
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