BitMEX launches mandatory user verification

BitMEX, a cryptocurrency derivatives exchange, launches a user verification program to create a more reliableand a secure trading environment requiring all clients to be verified within the next six months.

Regulators in different jurisdictions around the worldare developing clear rules for the crypto industry, and all of them include KYC policy compliance requirements. The introduction of verification will help the exchange meet the new operational requirements, said Ben Radcliffe, commercial director of BitMEX.

All BitMEX clients must complete the new verification process by February 12, 2021.

 He added:

User verification was on our to-do list. We prepared for this as it became necessary to launch a scalable, accountable and interoperable platform in the future.

User verification will also allow BitMEX to better understand its diverse user base, which will enable the platform to develop customized products for customers.

According to Radcliffe, the verification programBitMEX users should only take customers five minutes. Individuals will go through a four-step process similar to identification done by other cryptocurrency exchanges. Customers will be required to upload a photo ID and proof of address. In addition, a series of multiple choice questions will be asked regarding funds and trading experience.

Radcliffe called mandatory identity verificationA “building block” that lays the foundation for future BitMEX products and an overall “ability to do more”. For example, BitMEX plans to host a "very significant" trading tournament later this year, which will require verification of the user's identity.

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