After a 10-month long regulatory battle with United States financial watchdogs, leading cryptocurrency derivatives exchange BitMEX has agreed to settle and will pay a fine worth millions of dollars.
As confirmed by the exchange today, BitMEX has reached a $100 million resolution with the two U.S. regulators – the Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN).
Speaking on the settlement, BitMEX CEO Alexander Höptner noted that the development marks an important day for the company as they finally were able to put the ordeal behind them.
Höptner added that from now on, the exchange would actively engage with regulatory bodies across the world to ensure that they are in compliance while also playing a positive role in sharpening the future of the crypto industry.
“As crypto matures and enters a new era, we too have evolved into the largest crypto derivatives platform with a fully verified user base. Comprehensive user verification, robust compliance, and anti-money laundering capabilities are not only hallmarks of our business – they are drivers of our long-term success,” Höptner remarked.
Recall that BitMEX underwent a tumbling period after the company and its executives were slammed with charges by the CFTC and the Department of Justice (DoJ) for avoiding US regulations which included operating an unregistered derivatives platform.
Following the court filings, the exchange appointed a new compliance head with an AML background, made other key hires, and restructured its management team with Arthur Hayes and other founders stepping down from their executive positions.
BitMEX also made efforts to ensure that it became compliant with registration requirements as it quickly launched a compulsory verification process for all its users.