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BitMEX Crypto Exchange Users Warned by British Watchdog: Here's Why

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Thu, 03/05/2020 - 13:13
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Vladislav Sopov
'Registration' and 'authorization' from financial regulatory bodies is something crypto trading platforms struggle to acquire. The British FCA just reminded us once again
BitMEX Crypto Exchange Users Warned by British Watchdog: Here's Why
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The Financial Conduct Authority is a British financial watchdog responsible for the integrity of the financial instruments that deliver trading services to the citizens of the U.K. This week it decided to show cryptocurrency traders who is the boss.

Without our authorisation

On March 3rd, 2020, the FCA announced that the BitMEX crypto derivatives platform is not authorized to provide 'financial services or products in the UK'. Additionally, the surveillance body highly recommends being especially wary of dealing with the firm and avoiding scams.

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It was highlighted that the firm is targeting people in the U.K. The FCA claims it has information that the platform is carrying out activities which require authorization from the established order.

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Major London-based Crypto Firm Acquires FCA License

The FCA also outlined that it is highly unlikely that users of unauthorized firms will be able to restore their funds with assistance from the Financial Ombudsman Service or Financial Services Compensation Scheme 'if things go wrong'.

And what about Kraken?

From the very beginning, the similar notice regarding Kraken seemed very strange to participants of the crypto market. The notices from the FCA contain e-mail addresses and phone numbers of persons related to the firms mentioned.

In the case of Kraken, every address listed belonged to Google's free Gmail e-mail service, not to the official kraken.com domain. Also, the firm Crypto Facilities Ltd that uses the brand name 'Kraken Futures' is properly registered by the FCA (No. 757895)

Kraken Futures is registered by the FCA
Image by the FCA

As a result, the FCA has now deleted the warning about Kraken from its official web-site.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)