US CFTC Investigates Crypto Exchange BitMEX for Violating Rules

The US Commodity Futures Trading Commission (CFTC) is investigating prominent cryptocurrency exchange of Asia, BitMEX to find if the exchange violated rules by enabling US clients to trade on its crypto platform, people familiar with the news mentioned.

BitMEX cryptocurrency exchange has gained more popularity in Asia by allowing users to place large bets with a little amount.

As per Bloomberg, BitMEX cryptocurrency exchange is not listed in the US and the US regulator is investigating if the exchange has violated the rule. The investigators might take months to probe the issue, as per a Bloomberg report on Friday.

The CFTC considers digital currencies such as Bitcoin to be commodities and the US regulators have control on futures and other derivatives depended on them. Cryptocurrency exchanges should abide with the US regulation to enable US users to trade on its crypto platforms.

Bloomberg mentions that the investigation is currently under process with the US regulator.

About BitMEX

Hayes, Samuel Reed and Ben Delo together co-founded the company in 2014. BitMEX exchange is largely used in Asia and as per data; exchange is trading $10 billion per day. The exchange’s main office is in Hong Kong, registered in the Seychelles and also opened an office in San Francisco.

CEO of BitMEX, Arthue Hayes informed Bloomberg, “BitMEX provides safe, fast, professional and liquid ways for those who see the potential of crypto and to trade and hedge cryptocurrency risk.” He further added that the exchange continues to check legal and regulatory improvements across the world and will abide by all appropriate laws and rules.

The CFTC has refused to comment on the ongoing investigation process.