US CFTC Reportedly Launching An Investigation Against BitMex Over Client Trading

The most popular Bitcoin margin trading exchange, BitMex, is reportedly getting investigated by the United States Commodities and Futures Trading Commission (CFTC) for allowing US-based traders to use the platform. 

Trouble For BitMex?

According to Bloomberg Columnist Tim Culpan, the US CFTC is launching an investigation against popular Bitcoin margin trading exchange BitMex. The probe is related to the latter breaking the rules by allowing US-based traders to operate on its platform. Supposedly, the probe is going to be months-long. 

Interestingly enough, the reported move by the CFTC comes shortly after the heated debate between BitMex’s CEO Arthur Hayes and popular nocoiner Nouriel “Dr. Doom” Roubini. 

BitMex And US-Based Traders: The Current Position

Going through the Terms and Conditions of using the BitMex platform, we can see that US-based are not allowed to use it at all. 

You are not allowed to access or use the Services or the Trading Platform if you are located, incorporated or otherwise established in, or a citizen or resident of: (i) the United States of America… – The ToS read.

Moreover, all countries or jurisdictions which are embargoed by the United States are also cut off.

As Cryptopotato reported back in November 2018, the Hong Kong-based BitMex started shutting down the accounts which originated in the USA. Back then it was believed that the exchange actually turned a blind eye on US-based traders using it, even though it was against its policies. 

It’s questionable whether the reported probe would have an impact on the exchange and what direction it would take and it would be interesting to monitor the process in the meantime. 

The post US CFTC Reportedly Launching An Investigation Against BitMex Over Client Trading appeared first on CryptoPotato.

Source: Crypto Potato