The bitcoin derivatives exchange BitMEX gets a remarkable stamp from the analysts of Chainalysis: transactions of the exchange are now referred to as a ‚high risk‘ transaction.
BitMEX was sued last week by U.S. regulators and the Department of Justice. This creates uncertainty about the platform and customers are no longer sure about their business: $420 million worth of Bitcoin has already been withdrawn from the derivatives exchange.
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The Chainalysis measure ensures that companies and agencies that use their monitoring software receive a warning when they are dealing with bitcoin from BitMEX.
Both old and new transactions will cause a notification as of October 13th.
This stamp has a major impact on BitMEX in the industry. Chainalysis is one of the largest analysis companies and therefore influences the choices of their customers.
BitMEX itself will continue to run for the time being. The financial products are still available and withdrawals and deposits are still being processed.
Customers of Chainalysis count on the analysts and their software to scan their cash flows. Stolen bitcoin or other conspicuous BTC transactions give a warning message.
Chainalysis has different types of customers: government agencies, banks and stock exchanges among others.
BitMEX does not have the right licenses to offer bitcoin futures in America. However, tens of thousands of Americans were active on the platform. Also, according to the Commodity Futures Trading Commission (CFTC), the exchange’s Know-Your-Customer measures are not good enough.
In short: BitMEX does not meet the American guidelines and it is sometimes not entirely clear where their BTC comes from. Banks, stock exchanges and governments therefore want to know when they are dealing with a transaction from this platform.
According to Chainalysis, compliance teams need to keep a close eye on both new and old BitMEX transactions. However, when you also look at all old transactions, you will soon be confronted with thousands of reports.
That’s why the company recommends to solve this step by step and to work back slowly. That’s what The Block says.
Customers of Chainalysis have the possibility to set their own risk tolerance. But when a company or person is suspected of criminal activity, in principle the alarm bells go off everywhere.