What Does BitMEX’s Closure Reveal About New US Routes for Crypto Perpetuals?
Crypto perpetuals finally have defined regulatory routes in the US. That was not the case when offshore exchanges such as BitMEX built the market.
BitMEX will shut its exchange on 23 September after an 11-year run, providing a timely opportunity to examine how those regulatory routes now work.
The company said the decision followed a strategic review, and neither BitMEX nor the CFTC has linked it to recent regulatory changes.
Why Did Crypto Perpetuals Spend Years Offshore?
Early crypto venues built perpetuals outside the US because no practical domestic route existed for the product. At the same time, the CFTC applied heightened scrutiny to digital-asset derivatives through staff advisories issued in 2018 and 2023.
BitMEX used an offshore, direct-access model. The CFTC alleged in 2020 that it nevertheless accepted orders and funds from US customers without registering as a futures commission merchant.
The regulator also cited inadequate know-your-customer and anti-money-laundering controls. BitMEX settled with the CFTC and FinCEN for $100 million in 2021.
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