TL;DR Breakdown:
- BitMEX has integrated Chainalysis KYT to boost illicit transaction screening.
- This is meant to raise the exchange’s compliance program.
Having been charged by the United States regulators for facilitating money laundering with digital currencies, among others, BitMEX exchange is apparently taking the issue of security more strictly. Following a blog post on Tuesday, the Seychelles-backed crypto exchange is increasing its monitoring tools to ensure no illicit transaction passes through its radar. Such a move can be regarded as a big security walk to make a compliant/regulator-friendly trading platform.
BitMEX integrate Chainalysis KYT tool
As reported, the cryptocurrency exchange has integrated the “highly regarded” know-your-transaction (KYT) tool from Chainalysis, a leading blockchain intelligence provider. It’s worth noting that both companies have been in partnership for a long time. The addition of Chainalysis KYT tool comes as an addition to the exchange’s already-existing screening capabilities. The Chainalysis KYT tool will assist BitMEX’s compliance team in identifying, investigating, and monitoring, and halting dubious transactions on the platform.Â
“As a responsible player in the crypto space, it’s imperative for us to maintain a well-rounded, agile compliance function to detect bad actors and illicit transactions,” the Chief Compliance Officer at BitMEX parent company 100x Group, Malcolm Wright, said. “Chainalysis offers a highly innovative solution that supports our vigilance to these threats, and we are glad to partner with them.”
BitMEX tightens its compliance measures
BitMEX was charged on October 1 by the US Commodity Futures Trading Commission (CFTC). The regulator accused the exchange of facilitating money laundering and illegally operating in the country. The development affected BitMEX’s operation, and over 41,000 Bitcoin (BTC) were withdrawn from the platform at the time. This also led to the dismissal of BitMEX officials – Samuel Reed and Greg Dwyer – who were also named as defendants.
Since the announcement of the charges against BitMEX, the parent company has been more actively working to raise the exchange’s compliance. Besides, the cryptocurrency exchange recently collaborated with Eventus and Refinitiv to raise its compliance capacity.
