Cryptocurrency derivatives exchange BitMEX implements KYC program

As countries across the globe are starting to come up with regulations governing the cryptocurrency industry, crypto exchanges are likewise implementing necessary changes to comply with new laws. For instance, cryptocurrency derivatives exchange BitMEX a know-your-customer (KYC) program for its existing clients starting this month.

BitMEX announced that it will launch a user verification program starting August 28, 2020, Cointelegraph reported. In the next six months, the exchange will require all of the platform’s clients to provide ID requirements for verification as part of its KYC procedures.

The cryptocurrency derivatives exchange will confirm its users’ location and identity by requiring them to upload the necessary documents, TheBlockCrypto.com reported. “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,” the company said in a post. BitMEX added that its User Verification Programme is similar to the ID checks implemented on other exchanges and should take just five minutes to complete.

The exchange will assist corporate users through the verification process. “Corporate accounts will continue to go through the existing verification process, with our team ready to guide them through as quickly and efficiently as possible,” BitMEX said.

Founded in 2014, BitMEX is one of the largest crypto derivatives exchanges in the world. However, the platform does not require user verification since it was established.

With countries already enacting their respective cryptocurrency legislations, BitMEX wants to ensure that it keeps up with the times and comply with regulatory requirements. “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 wrote.

BitMEX explained that proper verification will also help in cases of a hack or dispute. “Practical customer security is greatly enhanced by identity verification, allowing BitMEX support personnel to reliably verify the actual owner of an account in the event of a dispute, hack, or incapacitation,” the exchange added.

To encourage users to verify their accounts, BitMEX will be launching a Trading Tournament in the coming weeks. Sizable prizes are up for grabs but the promotion will only be available for users who already completed verification.

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