BitMEX to begin ID checks for crypto traders by month end

More like a know-your-consumer (KYC) procedure, cryptocurrency derivatives trading exchange, BitMEX announced on Friday that it would be implementing ID checks for crypto traders. Once launched, BitMEX users have until February 2021 to complete their verification if they wish to continue trading on the platform.

BitMEX mandates ID checks for crypto traders

Following the announcement, the exchange will launch the ID checks for crypto traders on the platform precisely on August 28, under an initiative dubbed User Verification Programme. This will see the cryptocurrency traders on the exchange undergo a four-step ID verification process, similar to other digital currency exchange.

BitMEX users only have a period of six months (February 12) to complete the ID verification in order to continue using the platform, according to the announcement. While this applies to all the individual users, corporate accounts held with the exchange will continue to undergo the existing verification process.

Why ID checks now?

BitMEX mentioned that the ID checks for crypto traders on the platform are meant to enable them to ensure a secured and trusted trading platform for many users. On a second note, the exchange explained that user verification is expected on entities handling cryptocurrencies to comply with the evolving international regulatory standards. 

The exchange wrote:

“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.”

Noteworthily, BitMEX is known as a pioneer in cryptocurrency derivatives trading. The exchange alone reportedly handles about $1 billion in cryptocurrency trading, according to Skew. Meanwhile, the announcement for users ID checks is coming after the exchange revealed that it would restructure its parent company.