BitMEX crypto exchange steps up AML and trade surveillance measures

BitMEX, one of the world’s biggest Bitcoin (BTC) trading platforms, continues to strengthen its Anti-Money Laundering measures in the aftermath of its criminal charges in the United States.

According to a Nov. 12 blog post, BitMEX has partnered with software and compliance firm Eventus Systems to improve its trade surveillance and AML transaction capabilities.

Per the announcement, Eventus Validus‘ technology will be integrated into BitMEX’s existing trade surveillance and AML processes in order to provide a “safe and secure trading environment” for its users. “We will be able to more efficiently screen out bad actors and increase proactive monitoring for unauthorized trading activity on the BitMEX platform,” the blog post reads.

Malcolm Wright, BitMEX’s newly hired chief compliance officer, noted that the selection of Eventus is an important part of the company’s plans to further develop their compliance capabilities:

“Choosing Eventus is part of our ongoing commitment to achieve this vision as we execute signature initiatives like our User Verification Programme.” 

BitMEX’s latest AML move is another effort to step up its compliance processes as it faces criminal charges by the U.S. Commodity Futures Trading Commission.

On Oct. 1, the CFTC charged derivatives exchange BitMEX with operating an unregistered trading platform and violating AML regulations. Alongside the CFTC’s charges, the Department of Justice also argued that BitMEX failed to implement Know Your Customer and AML programs, violating the Bank Secrecy Act.

BitMEX’s executives subsequently denied the allegations, claiming that it will continue operating as usual, but the exchange has hired a new chief compliance officer and pushed a new KYC verification program. Users that do not complete the KYC program will not be able to withdraw funds from BitMEX after Dec. 4, 2020.