BitMEX, one of the largest crypto derivatives exchanges has recently announced that it will be restricting access to several jurisdictions due to insider-trading preventative measures.
The jurisdictions to be affected are Hong Kong, Seychelles, and Bermuda. All of these jurisdictions have a BitMEX presence. Seychelles with the HQ, Hong Kong with one of the main offices and Bermuda with most of the operations staff.
The decision was made by BitMEX’s parent company, HDR Global Trading Limited that mentioned that the restrictions will remove any and all risks of involving company employees’ insider trading dangers.
The official announcement stated that the change was being made in accordance with new regulations all over the world, but there is very little information if a financial institution demanded such practices to be enforced.
Many crypto experts believe that his move will handicap BitMEX’s access to the global markets as Hong Kong is currently a hotspot for crypto trading in the wake of economic and political uncertainties. The demand for crypto trading is going to keep increasing and BitMEX will simply miss out on the craze.
There are already reports that Hong Kongers are willing to buy cryptos at a premium price, sometimes paying more than $1000 extra just to get their hands on it.