BitMEX is expected to be listed as a ‘high risk’ exchange by the Crypto Intelligence company Chainalysis; only a week after its executives, including CEO Arthur Hayes, have been charged by the U.S. Commodity Futures Trading Commission ( CFTC).
Chainalysis told its clientele, which involves government departments, financial institutions and cryptocurrency exchanges, that it would classify BitMEX to be a ‘high risk’ product as of 13 October.
This risk classification upgrade on BitMEX ensures that Chainalysis clients who utilize the ‘KYT’ application tracking service can see both past and prospective cause warnings from the already haunted cryptocurrency derivatives exchange. Chain analysis shared the client’s advisory email with TheBlock,
“Any transfers from October 1st and later should be considered high risk. Compliance teams should also look back at older transfers, but given this change may trigger alerts on thousands of older transfers, it is reasonable to do that incrementally,”
Nevertheless, the Chainalysis spokesperson said that the company’s clients could opt for their own level of risk exposure and adapt accordingly. That said, they were eager to point out that it was their responsibility as a crypto intelligence company to safeguard their customers, thus the consideration of ‘high risk’ on the grounds of criminal proceedings brought against a particular company or its owner/leadership.
In the meantime, Arthur Hayes remains in large part, as BitMEX’s parent company, HDR Global Trading Ltd, has agreed to take over the government against the newly filed charges. The accused is being investigated for breaching the KYC / AML laws and maintaining an unlicensed trading facility. Although it might be soon to forecast the future of BitMEX, the platform is already having a significant effect on its market.
In reality, brutal skeptics such as LMAX Group CEO David Mercer are of the view that recent changes would eventually have an effect on BitMEX ‘s ongoing concerns,
“I can’t see any significant institution wanting to continue to trade there.”