Cryptocurrencies

Crypto Derivatives Exchange BitMEX to Block Ontario Traders

BitMEX CEO Arthur Hayes (CoinDesk Archives)

BitMEX, one of the oldest cryptocurrency derivatives exchanges, is to block users in one Canadian province.

  • According to a blog post on Monday, customers based in Ontario, Canada, will no longer be able to use the trading platform as of Sept. 1, 2020.
  • New derivatives positions may not be opened after that date, while positions that are already open may run till Jan. 4, 2021.
  • BitMEX said it would force-close positions open at that point and requested users to close them prior to the shutoff date.
  • A precise reason why the block on Ontario users was brought in was not disclosed, but the exchange said it was “mandated” by the state’s securities regulator, the Ontario Securities Commission.
  • Ontario users trying to register and trade on BitMEX after Sept. 1 would be in breach of the firm’s Terms of Service, per the post.
  • The news comes as the sometimes controversial exchange moves to become more compliant with regulators, having brought in compulsory “know-your-customer” verification procedures earlier this month.
  • The exchange has barred U.S.-based users from its platform since 2015, and recently blocked traders in Hong Kong, Bermuda and Seychelles.
  • Based in Eden Island, BitMEX has sometimes been criticized for offering traders high levels of leverage.
  • The exchange’s parent firm recently changed its name to “100x,” though claimed it was not a reference to leverage at the time.

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