Cryptocurrency

Fraudulent Intentions? UK regulator warns of crypto-exchange, BitMEX

The British Financial Conduct Authority (FCA) has just issued a statement, in the BitMEX is accused of financial services without proper authorization to offer. She advises British citizens, from the exchange to keep.

BitMEX with Scammers compared

The UK’s financial services authority warns against use of BitMEX. She accuses BitMEX, although not directly, to cheat customers. They pointed out, however, that the operation without a proper license is both illegal as well as much more likely with scams associated.
This is not the first step in the UK, the efforts to deal with BitMEX and similar exchanges. Last June, the FCA began with the investigation of a ban of crypto-derivatives, the one you recommended later. In October last year, the Advertising Standards Authority (ASA) in the country filed a complaint against a display, the BitMEX had published in British Newspapers.
The UK is one of the many Nations that now steps in the markets for crypto-currency exercise the derivatives of control. These financial products are currently unregulated and extremely risky.
As one of the most popular exchanges, this type of trading has to offer, sits BitMEX, of course, in the crosshairs. In order to reduce the pressure, BitMEX geoblockiert several countries, especially the United States.

Regulation will be extremely difficult

BitMEX is part of a large crypto-stock exchange sector, with the introduction of new financial products increasingly complex. While the Supervisory authorities in this activity are well aware of the power of the borderless, anonymous nature of the Blockchain technology, in compliance with the regulations is extremely problematic.
BitMEX for its part, has always insisted that it is an honest Institution, and calls on the customer to comply with all relevant laws. Nevertheless, despite the leverage opportunities lead all twenty-four hours to huge amounts of crypto-currency Trading through the platforms.
Now the stock market is accused to facilitate, either directly or indirectly, a majority of the market manipulation that has become a “trademark” of the crypto-period. It is therefore not surprising that governments are trying to tackle.
The Situation becomes more complex when the old financial institutions are not involved into crypto Trading. During this, participants will work as well as safe, together with the regulatory authorities, could force their presence on the governments to take greater steps to crypto-currencies as a new plant to treat class.
Crypto advocates have long been calling for a stronger legal recognition of Blockchain Assets such as Bitcoin as a means of both, a mass Takeover, as well as to prevent fraud.
On the Declaration of the FCA should follow, therefore, a greater effort of the authority, to develop Standards, to which crypto and traded can be bought. If you will take these steps as soon as possible, it remains to be seen.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.