Crypto Derivatives Exchange BitMEX to Block Ontario Traders

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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