Seychelles-based cryptocurrency derivatives exchange BitMEX is introducing ID checks for all customers from 28 August. 

The exchange, which is owned by 100x Group (formerly known as HDR Trading), has drawn criticism in the past for being too lax regarding compliance, having no customer ID or verification checks in place. 

But, as of 28 August, BitMEX will be launching a new user verification program, with all customers required to complete ID checks within six months.

The exchange has said that the new procedures should only take customers five minutes to complete, and as an incentive it will be running a trading tournament open only to verified customers.

BitMEX is currently facing a potentially huge lawsuit in California, accusing it of being “deliberately designed, from the ground up” to aid or abet in a “myriad of illegal activities.” Meanwhile, another lawsuit, in New York, accuses the exchange of being involved in selling unlicensed securities without broker-dealer licensing, and engaging in market manipulation of cryptocurrencies. 

AYO.NEWS says:

We’re sure some BitMEX customers won’t be too happy about this, but it was always going to happen, so they should have been expecting it. On the plus side, it should give many people more confidence in the exchange, and is sure to help BitMEX comply with the myriad of local crypto regulations around the world. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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