BitMEX Struggles with Compliance Amid Regulatory Scrutiny
BitMEX is one of the most prominent crypto derivatives exchanges, but it's not without controversy. The exchange has been in operation for years and offers advanced products like perpetual contracts, dated futures, and high-leverage instruments favored by professional traders.
The exchange's reputation is tempered by its history with U.S. regulatory bodies, which have taken issue with BitMEX's anti-money laundering controls and registration requirements. As a result, the platform has faced significant penalties and compliance undertakings.
One of the key issues for users is that BitMEX is generally not available to U.S. residents and U.S. persons due to regulatory restrictions and the platform's own compliance posture.
The exchange requires identity verification for users, with access to trading features tied to completion of verification steps. Fees are structured using a maker/taker trading fee model, with costs varying by product and whether an order provides liquidity or removes it.