BitMEX follow-up impact, UK strengthens supervision of cryptocurrency exchanges

Source: Shallot Blockchain

The Financial Market Conduct Authority (FCA) has issued a statement regarding BitMEX, a cryptocurrency derivatives exchange. The FCA says BitMEX has been targeting British investors but has not been authorized. Although it did not explicitly accuse BitMEX of any fraudulent or suspicious activity, the statement did mention that companies that provide financial services without proper permission may actually be a scam.

The FCA said: "BitMEX has not been authorized by us and has been targeting British investors. Based on the information we have, we believe that it is conducting regulated activities and requires our authorization." In this regard, a BitMEX spokesperson said, " We are working closely with our consultants to assess the situation. We can do nothing at this time. "

Kraken also under investigation

The FCA issued a similar warning on cryptocurrency exchange Kraken on Tuesday, but it was later deleted. According to theBlock, the notification was an FCA error and Kraken's compliance team is investigating the matter with the FCA.

FCA has yet to comment on the matter.

However, it is worth noting that according to the regulator's website, the futures trading platform Crypto Facilities acquired by Kraken is being regulated by the FCA.

UK regulation further strengthened?

According to TheBlock, sources have revealed that the FCA may issue similar warnings against more cryptocurrency exchanges. Sources said exchanges such as Deribit, CoinFLEX and Bybit could be the next.

A search on the FCA website did not show that the three exchanges were registered. Deribit CEO John Jansen said the exchange was not actively seeking customers in the UK and was not actively promoting its services in the UK, so "there is no problem at all."

"To actively provide Deribit services in any other country in the European Union, it also needs to be registered or regulated with the relevant authorities. More precisely, Deribit needs to do so in every country actively seeking customers. Therefore, Deribit does There is no registration with every agency in the EU, but just no active engagement with or business with EU potential customers, "Jansen added.

As for the FCA warning, Jansen said it was to make citizens aware of irregular exchanges. He reiterated: "This is nothing special, as long as the irregular exchanges are not actively promoted or operated in the UK, there will be no problems."

It is worth noting that Deribit is not currently serving in the United States. When asked why the exchange has not blocked UK customers, Jansen said "not needed" because US, UK and EU laws differ.

"U.S. regulations are more stringent because their law states that 'accepting U.S. customers on non-regulated platforms' can be considered a crime. In contrast, in the UK or the EU, it simply states that it is not allowed to promote or operate the platform on its territory, This is allowed if the EU or UK citizen seeks a transaction on Deribit, as long as we do not actively persuade him to do so / actively promote the platform in the EU or UK, "Jansen added.

Two other exchanges, CoinFLEX and Bybit, have yet to respond to this.

Last month, the FCA became the regulator of crypto activities in the UK. Therefore, all existing and new cryptocurrency related companies must be registered by the regulator. The deadline for registration of existing companies is January 2021.

Translated from: theblockcrypto (https://www.theblockcrypto.com/post/57838/bitmex-not-authorized-to-operate-in-uk-says-it-is-working-to-assess-the-situation)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Using data to review 2019 of decentralized exchanges

Author: Alethio Translation: A Jian Source: consensys Translation source: Ethereum lovers Monero’s Community Crowdfun...

Blockchain

Long Push Receiving 1 million ARB airdrop, Summary and Reflections on 2 Years in the Circle

Note This article is from @0xfarmer_ on Twitter, summarized by MarsBit as follows Time flies. I have finished my subs...

Blockchain

Xiaoyan follow-up: CZ, Nathan Kaiser, ten "big coffee" in the same box, market, trading, technology, all the nets

The Asian Block Summit was held in Taipei on July 2nd and 3rd. The summit focused on “blockchain business ...

Blockchain

The hacker is keeping a close eye on the currency exchange: 5 were killed and 8 were "Lai Lai"

Digital currency is becoming a fertile ground for hackers. The hot exchange is undoubtedly a huge "gold mine&quo...

Blockchain

Interviewed 800 crypto traders in 75 countries around the world. What did they find?

"Traders look for simplicity, but the exchange can't meet it. 80% of participants have entered the market f...

Blockchain

How many entities hold Bitcoin? These 7 exchanges are worth watching

Written by: Rafael Schultze-Kraft Translation: Lu Jiangfei Source: Chain News Problems with quantifying the number of...