The crypto market was surprised previously today when news broke concerning popular leveraged crypto trading exchange, BitMEX, being examined by regulative authorities in the United States.
Significantly, news concerning this examination happened quickly after leading authorities within the United States federal government slammed the nascent crypto markets, with the Treasury Secretary cautioning that they would be executing and imposing “really strong” policies in the near-future.
Crypto Trading Platform BitMEX Under Instigation by CFTC
Previously today, news broke that BitMEX is presently being examined by the United States Product and Futures Trading Commission (CFTC) for enabling Americans to use the platform without having the correct licensing and registrations.
The news, which was initially reported by Bloomberg, came carefully on the heels of remarks from leading authorities within the United States federal government, who provided a less-than-positive point of view on the crypto markets, considering them as markets swarming with criminal activity and deceptive activity.
HDR Trading Limited, BitMEX’s moms and dad business, decreased the chance to talk about the examination, however BitMEX CEO, Arthur Hayes, has actually formerly specified that the business does prohibit users from the United States who try to weaken the business policy– which technically does not enable United States homeowners to access the platform.
It stays uncertain regarding where this examination might lead, or regarding what the consequences might be. However popular critic of both crypto and BitMEX, Nouriel Roubini, kept in mind in a current tweet that be thinks the accusations stated by the CFTC are simply a “portion of the sleeze going on in BitMEX.”
Criminal offenses penetrated by @CFTC are a portion of sleaze going on in BitMEX:
U.S. Regulator Penetrating Crypto Exchange BitMEX Over Customer Trades. Trading platform understood for 100 x utilize futures agreement. Probe comes as regulators increase analysis of crypto sectorhttps://t.co/X0JDU5Ge46
— Nouriel Roubini (@Nouriel) July 19, 2019
United States Federal Government Ready To Crackdown on the Nascent Markets
The CFTC’s probe of BitMEX comes simply one day after US Treasury Secretary, Steven Mnuchin, informed CNBC in an interview that the federal government would start policing crypto with “really, really strong” policies.
Mnuchin even more included that the objective of these policies would be to guarantee that Bitcoin and other cryptos do not end up being the equivalent of “Swiss-numbered checking account.”
Due To The Fact That it is not possible to in fact manage decentralized cryptocurrencies themselves, it is extremely likely that the very first target of regulators will be crypto exchanges, as a number of them have actually been running in the shadows below the nose of regulators.
In other nations that have more progressive policies, like Korea, federal regulators initially began targeted crypto exchanges, requiring them to stick to the stringent guidelines that govern the banking market.
Although it still stays clear regarding when and how the United States will set about slapping the “really strong” policies on the marketplaces, it is most likely that more exchanges will start dealing with increased analysis from groups like the CFTC in the near-future.
Included image from Shutterstock.