BitMEX Moves to Compulsory ID Checks for All Customers

Hong Kong based cryptocurrency derivatives exchange BitMEX will be launching a user verification program on August 28, requiring all customers to complete ID checks within the next six months.

As a sweetener, they're offering a trading competition that's only available to verified customers.

While BitMEX was founded in 2014 and has grown to become one of the largest derivatives exchanges in the world, the platform hasn't previously required user verification.

Commercial Director of BitMEX Ben Radclyffe told Cointelegraph that all of BitMEX's customers must complete the new verification process by February 12, 2021:."User verification has been on our list of things to do. We've been getting ready for this, as it's become necessary in order to run a scalable, responsible, compliant platform moving forward. This is a building blockchain for us to grow and do business in the future."

With numerous jurisdictions around the world coming out with explicit regulations for the crypto industry, Radclyffe noted that having a user verification process in place will help exchanges meet new operating requirements.

User verification will also allow BitMEX to better understand their diverse user base, allowing the platform to develop tailor made products for customers.

Details of the large-scale trading tournament for verified customers in the coming weeks.

A five minute processAccording to Radclyffe, BitMEX's user verification program should only take customers five minutes to complete.

Customers will be required to upload a photo ID and proof of address.

Most recently, a withdrawal associated with the Twitter Hack on July 15 was made from BitMEX. Radclyffe explained that customer security will be greatly enhanced by identification verification, especially in the event of a dispute, hack or incapacitation.