Cryptocurrency derivatives platform BitMEX announced that traders based in Ontario will no longer have access to its exchange starting September 1, 2020
In a blog post published Monday, BitMEX said customers located in Ontario, Canada, will be blocked from using its trading platform beginning next month. From 00:00:00 EST on September 1, 2020, Ontario-based traders on BitMEX will be unable to open new positions or increase existing ones.
The trading platform said existing positions will remain open until January 4, 2021, when it intends to forcefully close any remaining positions; traders are asked to close their positions before that deadline. Residents of Ontario attempting to register on BitMEX for the first time after the cutoff date will be prevented from doing so. “Any such attempt will constitute a breach of our terms of use,” the post adds.
BitMEX stated it received an order from the provincial securities regulator, the Ontario Securities Commission, to cease operations for Ontario residents. The platform said it supports global regulators’ efforts to set standards for crypto products that will help advance the emerging asset class. BitMEX added that it “will continue to engage with the Ontario Securities Commission to support its objectives for the Ontario market and will keep our Ontario-based clients informed. If clients have questions, please contact us.”
This move comes as BitMEX increases its focus on regulatory compliance worldwide. The introduction of a Know Your Customer (KYC) verification program earlier this month signaled the company’s intent to operate within regulatory frameworks. However, such compliance efforts could also lead to service restrictions in other jurisdictions.
BitMEX has barred access to its platform for U.S.-based operators since 2015 and has more recently blocked users from Hong Kong, Bermuda, and the Seychelles. The derivatives trading platform, based on Eden Island, has faced repeated criticism for offering high leverage to crypto traders. On BitMEX, traders can use leverage up to 100x on its Bitcoin Perpetual / USD Perpetual contract. The company’s parent rebranded to 100x, though it has stated the name change is not intended to reference the leverage levels it offers.