Law and Legislation

Canadian Ontario Users Banned By BitMEX Starting From 1st Sept.

One among the largest cryptocurrency derivatives exchanges, BitMEX, is banning users in one Canadian province .

In line with an official web-blog post today, BitMEX users based in Ontario, Canada, will not be able to use the trading platform as from 1st Sept., 2020.

New derivatives positions might not be opened after the mentioned date, while positions that are already open might run till 4th Jan., 2021.

BitMEX said it might force-close positions open at that time and request users to shut them down before the shutoff date.

A precise reason why the block on Ontario users was brought in wasn’t disclosed, but the exchange said it had been “mandated” by the state’s securities regulator, the Ontario Securities Commission.

Ontario users trying to register and trade on BitMEX after 1st Sept. would be in breach of the firm’s Terms of Service, according to the post.

The news arrives as sometimes controversial exchange moves to become more compliant with regulators, having brought in compulsory KYC verification procedures earlier this month.

The exchange has barred United States based users from its platform since 2015, and recently blocked traders in Hong Kong, Bermuda and Seychelles also.

Based in Eden Island, BitMEX has sometimes been criticized for offering traders high levels of leverage.

The exchange’s parent firm recently changed its name to “100x,” though claimed it had been not a reference to leverage at the time.

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