BitMEX has settled its case with the U.S. CFTC and FinCEN, paying a $100 million fine. The exchange will now focus on new business products and compliance.
Cryptocurrency exchange BitMEX has finally reached a settlement in its case with the U.S. Commodity Futures Trading Commission (CFTC) and FinCEN. The exchange paid a fine of $100 million to settle the case, marking the end to a protracted, high-profile case. The fine will be split equally between the CFTC and FinCEN.
The settlement comes as BitMEX is taking strong action to make it more regulation compliant. This includes verification systems, new systemic processes, and new hires. Not the least of these was a surveillance partnership.
Current BitMEX CEO Alexander Höptner spoke of looking towards the future,
“Today marks an important day in our company’s history, and we are very glad to put this behind us. As crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success.”
One of the most major points in the case was BitMEX’s ‘inadequate’ systems with respect to compliance. But with this development, BitMEX can start fresh and follow through on its long-term plans.
BitMEX moving forward
The BitMEX case was one of the most talked-about in the market, frequently making headlines. However, Hayes, Reed, and Delo are not out of hot water yet. They will be tried for a potential violation of the Bank Secrecy Act, but the exchange itself can now move on and focus on a different business model.
Part of its strategy in moving forward will be going ‘beyond derivatives,’ something BitMEX itself referred to in the blog post. It will add five new business segments, which are spot, brokerage, custody, information products, and an academy. It has recruited new team members to accomplish this goal, along with speaking to regulators.
The exchange has been moving forward in other ways too. It joined AC Milan as its first-ever sleeve partner, with the BitMEX brand appearing on both the men’s and women’s teams. The exchange will also become its first official cryptocurrency trading partner.