'The Game Has Changed,' Says Arthur Hayes As BitMEX to Verify All Its Traders
Major crypto derivatives exchange BitMEX said it will ask all its customers to complete ID checks within the next 6 months if they want to to continue trading on the platform.
"The game has changed, and so have we; keep a stiff upper lip," tweeted Arthur Hayes, Co-founder and CEO of the company.
The User Verification Programme is scheduled to launch on "00:00 UTC on 28 August," while their users will have time to complete it by 12 February 2021. Individual users will be prompted to upload a photo ID and proof of address, take a selfie, as well as answer a few multiple choice questions about source of funds and trading experience, BitMEX said.
According to the company, these new controls will enable them "to create a more trusted and secure trading environment for all BitMEX users."
"Today, user identity verification is increasingly expected in order to meet evolving international regulatory standards, and is an important part of building trust in the cryptocurrency ecosystem," the exchange said, adding that identity verification would also help in the event of a dispute, hack, or incapacitation.
Additionally, BitMEX said that they "will also be unveiling details of a significant Trading Tournament in the coming weeks where users who have completed verification will be eligible to compete for sizable prizes."
Learn more: Will "No KYC" Exchanges Survive in a Regulated Crypto Industry?