One of the largest crypto derivatives exchange, BitMEX is currently under investigation by the US’s top regulator, CFTC. The trading platform is majorly known for the crypto derivatives trading feature.
CFTC Investigating BitMEX
The probe comes after the US’s Commodity Futures Trading Commission (CFTC) realizes exchange is enabling people to make big bets with little money down. With that being said, regulators want to make sure BitMEX has not followed any way to shatter rules set and allowed US residents to trade on the platform. As per the current law, residents from the United State is excluded using BitMEX’s services and regulators suspect that BitMEX allowed US residents to use its crypto derivative platform
This was first reported by Bloomberg, adding a person’s reference related to the matter. However, the details of ongoing investigation is still out of sight and regulators haven’t disclosed anything officially yet. When asked about a similar matter to BitMEX. a spokeswoman from the company declined to explain and stated that;
“HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report,”
BitMEX is a Black Hole for Bitcoin
However, there isn’t a full stop on this topic yet but as per analyst, this isn’t surprising though. According to eToro’s Senior Market Analyst, Mati Greenspan, BitMEX exchange is like a “black hole for Bitcoin”. In his daily newsletter, Mati states that CFTC’s investigation shouldn’t come as much of a surprise”.
This shouldn’t come as much of a surprise to anyone who’s been watching the space.