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Bitmex said Wednesday that it is fast-tracking its user verification program in order to comply with regulatory requirements. Users must now be fully verified by Nov. 5, 2020 \u201cto continue trading on the platform,\u201d it said.<\/strong><\/p>\n In a statement<\/a>, the crypto derivatives exchange stated that \u201cunverified users will not be able to open new positions\u201d after this date. They will also \u201cnot be able to withdraw funds from their Bitmex account without completing verification\u201d beginning Dec. 4.<\/p>\n The accelerated verification means Bitmex\u2019s mandatory know-your-customer (KYC) process \u2013 first announced Aug. 28, 2020 \u2013 will now close three months earlier than originally scheduled. Initially, it was slated to end February 2021.<\/p>\n Bitmex may have been pressured into action by the charges it faces in the U.S. The exchange was recently charged<\/a> by the U.S. Commodity Futures Trading Commission (CFTC) for operating illegally and for \u201cfailing to implement required anti-money laundering procedures.\u201d<\/p>\n At the same time, the Department of Justice (DoJ) indicted<\/a> former chief executive officer Arthur Hayes and his leadership team for \u201cviolating the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act.\u201d<\/p>\n \u201cRecent events have underscored the requirement for market operators to implement robust and compliant KYC programme,\u201d Bitmex said.<\/p>\n As part of the exchange\u2019s KYC procedures, individual users are prompted to upload a photo ID and proof of address, take a selfie, and answer several questions that relate to the source of their funds and their trading experience. Bitmex says this takes approximately five minutes to complete, and more than 50% of its users have since completed the process.<\/p>\n By Nov. 5, Bitmex customers will need to have completed verification in order to open a new position or to increase an existing position. Existing open positions can be maintained or reduced by unverified users, although pending orders that would increase a position will be cancelled, it said.<\/p>\n After Dec. 4, \u201cif there are remaining open positions on unverified accounts, we will review these\u2026and communicate directly to users holding these to facilitate an orderly closing of these positions.\u201d<\/p>\n Crypto exchanges are under pressure to implement stringent KYC procedures, as regulators around the world seek to align with anti-money laundering recommendations from the Financial Action Task Force (FATF).<\/p>\n What do you think about Bitmex\u2019s accelerated KYC processes? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post Bitmex Fast-Tracks KYC Program as Regulators Tighten Screws on Anti-Money Laundering Rules<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n