BitMEX is one of the most popular crypto exchanges globally with the highest trading volume. The platform is mostly preferred by professional traders who prefer trading through contracts rather than trading in currency directly.
The BitMEX trading platform was founded in Hongkong by Arthur Hayes, Ben Delo and Samuel Reed in 2014 and is currently based in Seychelles. The crypto exchange immediately gained mass attention due to its innovative features, such as margin trading/leverage trading. The platform allows traders to buy commodity futures and trade in perpetual swap contracts on a long list of cryptocurrencies.
Currently, the platform has 18 cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and more, and it frequently adds more cryptos to its list. BitMEX users can take advantage of the advanced trading tools the company recently introduced, such as the 100x leverage trading system.
This kind of leverage trading are high risks investment and is one of the reasons why BitMEX came under the scrutiny of the Commission Futures Trading Commission (CFTC) and the FSA in the US. The exchange is not available to U.S. customers since it fails to comply with the Bank Secrecy Act in the US.
Therefore, the company introduced a User Verification program in 2020 with detailed KYC requirements to keep a check on money laundering activities, if any, on the website.
Does BitMEX Require KYC?
Yes, it does. BitMEX was charged with lax anti-money laundering controls by the Financial Crimes Enforcement Network of the US in 2020. Therefore, it started the user verification program soon after and made it mandatory for users to complete the KYC process to start trading.
It made it mandatory for users to complete the process if they want to increase an existing position or open a new position. Unverified users could either maintain or reduce existing open positions. BitMEX now aims to become an industry leader in identity verification initiatives through this process.
How To Complete The BitMEX KYC
The BitMEX verification process is easy and is completed in just 4 simple steps.
- Log in to your BitMEX account, and you will see the verification page. Click on the box aggreging that you are not a US citizen or US passport holder and select “Get Started.”
- Next, enter your personal details such as your “Full name,” “Date of Birth,” “Nationality,” and “Where was your identity document issued.” Choose a document that is issued by the Government and keep it next to you while completing the process.
- The next step is to verify your identity by choosing the type of document. You can either choose a passport or any other identity card. Regardless of the document you choose, you cannot upload scans or photocopies of the document but the original one.
- You will need to click a photo from your phone and upload it. If you are choosing a passport, then it shows the correct alignment while clicking the passport photo page. For other documents, you need both the front and back photos to upload.
- The next step is to record a video where you have to speak or move according to the instructions given. You will get 20 seconds to finish recording. You will have to record a video of you reading three digits on the screen out loud and move your head to the left. Finish the recording and check if it’s fine, and if yes, then you can upload it.
- After submitting the video, the next step is to verify your location. Fill in your “Street address” and “Country of Location” along with a “Proof of address.”Enable location access on your browser, and the website will automatically lock your proof of address.
Users who can’t use the browser for location proof can choose to upload a proof of address document. You can choose any of the formats mentioned, such as bank statement, utility bill, or mobile bill issued in the past 3 months.
This process can take up to 72 hours to get verified. Upload the document and “Continue.”
- The final step is to add a few more details regarding your employment status, trading experience, and how much you intend to deposit on BitMEX. Once all the details are filled in, click on “Continue,” and your KYC process is done.
- The BitMEX team will review your application and send you an e-mail stating that your account is verified.
Is BitMEX Regulated?
BitMEX is a licensed Cryptocurrency exchange company that operates under strict compliance to AML programs and regulations pertaining to the finance system, with regulatory guidance. It provides financial services to users worldwide with its range of trading tools through a secure and safe transaction process.
Its KYC requirements reiterate the fact that BitMEX is committed to keeping its customers’ wallets from any cyber threats. However, the company was hit by a fine after New York federal prosecutors monitored the firm and the people associated with it.
BitMEX is a global crypto derivatives trading platform that is also considered one of the high-risk exchanges because of its 100x leverage system on Bitcoin. However, the platform has evolved over the years into becoming a safe investment platform for investors who wish to take advantage of blockchain technology.
The regulations follow suit of other trading platforms like Binance, which have strict trading rules in place for its users. BitMEX does not allow users from all jurisdictions in the world due to the different country laws and regulations.
However, if you are desperate to use the platform, then using a VPN to log in will do the trick. You can even access their customer support and ask for financial advice anytime you like. With many crypto firms coming up in recent years, BitMEX has managed to become one of the leading crypto derivatives exchanges in the world as covered in our full BitMEX review.