BitMEX a peer-to-peer trading platform specializing in crypto derivatives, such as futures and margin trading gives out 1.5M BMEX tokens.
BitMEX is a platform better suited to experienced traders, with a focus on leveraged trading and derivatives.
BitMEX is fined $100 million for illegal crypto operations
The exchange, which was founded in 2014, provides contracts on cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tezos (XTZ). Unlike many other platforms, the exchange uses Bitcoin as its base currency and does not accept deposits or withdrawals in fiat currencies.
BitMEX has seen its share of controversy in recent years. BitMEX was fined $100 million by a US Federal Court in the summer of 2021 for illegally running a crypto trading platform. BitMEX was also found to be in violation of anti-money laundering legislation, according to the court.
In October 2020, the Commodity Futures Trading Commission (CFTC) filed a complaint against BitMEX. BitMEX also failed to follow proper AML, KYC, and Customer-Information-Program (CIP) protocols, according to the CFTC.
BitMEX sought to address the concerns, according to the CFTC notice dated August 2021, by implementing an AML and user-verification procedure.
A Significant Change in the Regulatory Environment
The regulatory environment has evolved significantly since the BitMEX fine, with the crypto sector under heightened regulatory scrutiny.
The Bank of England and others have called for a worldwide crypto regulatory framework, which has prompted authorities to act. The Biden administration said last week that an executive order tasked agencies with regulating cryptos as a matter of national security will be released soon. More is expected to come, especially with the Indian government growing its involvement in the crypto area. The Indian government just imposed a 30% cryptocurrency tax.
The crypto sector, despite the increased scrutiny, continues to expand, with exchanges actively promoting their platforms to raise brand awareness.
BitMEX airdropped 1.5 million of its native cryptocurrency BMEX tokens on Tuesday, despite increased regulatory scrutiny. BitMEX distributed BMEX tokens to user wallets depending on prior platform activity.
The cryptocurrency is based on the Ethereum network and has a total quantity of 450 million tokens. The tokens will be vested for a maximum of five years. BitMEX will use the bulk of BMEX to reward users and expand the ecosystem with new partners and businesses, according to the BitMEX Litepaper.