BitMEX Under Investigation! BitMEX, a Seychelles-based cryptocurrency exchange, is reportedly under investigation by the US Commodity Futures Trading Commission (CFTC).
The news appeared via the Bloomberg Terminal soon before press time on Friday. This was followed up by a report by Bloomberg citing sources close to the regulator who said they’re investigating whether or not the exchange has allowed US traders to use its platform.
The CFTC considers Cryptocurrencies like Bitcoin Commodities and therefore has jurisdiction over derivatives such as futures based on Cryptos. BitMEX would have to be registered with the CFTC in order to allow Americans to trade those products offered by BitMEX.
According to BitMEX’s website, they offer cryptocurrency trading with up to 100 times leverage and other products like futures and swaps.
According to Bloomberg, the CFTC investigation is “ongoing” and may not lead to any misconduct allegations. The report also noted that when asked for comment by Bloomberg, the CFTC declined to comment.
Nouriel Roubini attacked BitMEX just a few days ago – a noted economist and crypto skeptic, he said it “may be openly involved in systematic illegality”. He also argued that the high leverage exposed traders to too much risk.
BitMEX CEO Arthur Hayes has said before that they do not trade against clients.
What do you think? We know the crackdown by US authorities is happening. President Trump isn’t a fan of Bitcoin. Cryptocurrency manipulation is rampant. BitMEX under investigation by the CFTC – did you see this coming? Let us know on our Facebook page!
