August 28th BitMEX starts a user verification program that requires all clients to perform an identity verification in the next six months.
But as a sweetener offer a business contest that is only available to verified customers.
Although BitMEX was founded in 2014 and has grown into one of the largest futures exchanges in the world, The platform did not previously require user verification.
Ben Radclyffe, BitMEX’s chief commercial officer, told Cointelegraph All BitMEX clients must complete the new verification process before February 12, 2021:
“User verification was on our to-do list. We have prepared for this as this has become necessary in order to operate a scalable, responsible and compatible platform in the future. This is a building block for us to grow and do business in the future. ”
With numerous jurisdictions around the world enacting explicit regulations for the crypto industry, Radclyffe noted A user review process helps the exchange meet the new operational requirements. User verification also enables BitMEX to better understand its diverse user base.This enables the platform to develop tailor-made products for customers.
Details on the major trading tournament for verified customers will be published in the coming weeks.
A five minute process
According to Radclyffe BitMEX’s user verification program should only take five minutes.
Individuals go through a four-step process that is similar to the identification checks performed by other crypto exchanges. Customers must upload photo ID and proof of address. They are also asked a series of multiple choice questions about funds and trading experience. “Users who have undergone a financial services review online are familiar with this process,” said Radclyffe.
Radclyffe said that BitMEX corporate customers will continue with the same verification process that is already in progress. However, new features can be added to facilitate process progress. This is especially important as BitMEX launched a new program for its corporate customers on June 22nd to provide more security and accounting features.
The good and the bad
Mandatory verification is likely to be unpopular with some, but greater confidence in the platform for others. In March, Cointelegraph reported that it was offline for 25 minutes, which led members of the crypto community to wonder if there was a bad game going on behind the scenes.
More recently, on July 15th, there was a recall related to the BitMEX Twitter hack. Radclyffe explained that Checking the ID significantly improves customer security, especially in the event of a dispute, hacking or incapacity to act.
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