- BitMEX offers notice to Ontario-based users to close their positions on the platform.
- The Edge Island-based exchange aims to follow regulations and KYC requirements.
BitMEX, one of the largest Bitcoin futures exchange, will shut down its services to the Canadian province, Ontario, to users starting September 1st, 2020. In a blog post published on the BitMEX website, the exchange will restrict any new users, new orders, or an increase in existing orders from Ontario residents.
Any existing open position by users from the Canadian province, past the 1st of Sept., should be closed by the 4th of January 2021 00:00:00 EST to comply with the exchange’s Terms and Service. According to a spokesperson from the exchange, any open positions by Ontario residents past this date will be forcefully closed by the exchange.
These drastic changes will only apply to Ontario based users with BitMEX exchange still operating in other Canadian provinces.
According to the statement, the latest move is in line with a “mandate” by the state’s financial regulatory commission, Ontario Securities Commission (OSC). The exchange is leaning towards the regulators’ side to formulate products in line with the regulatory standards set in place.
Since the QuadrigaCX scandal, the OSC has taken a more forceful approach to regulating cryptocurrencies and digital asset service providers. In a statement released in January this year, the OSC clarified its position on digital assets as securities claiming some exchanges are bound by securities law. It reads,
“We note that some Platforms are merely providing their users with a contractual right or claim to an underlying crypto asset, rather than immediately delivering the crypto asset to its users.
In such cases, after considering all of the facts and circumstances, we have concluded that these Platforms are generally subject to securities legislation.”
The high leverage derivative exchange has come under criticism in the past for its products and margin trading. Consequentially, the exchange, owned by 100x Group, will now implement mandatory KYC by Feb of 2021 as well as stopping its services across several states in the past few years including, Hong Kong, China, North Korea, Seychelles, Japan, Bermuda, Quebec in Canada, and Iran among others.