UK’s FCA Declares BitMEX Unregulated in Britain

The Financial Conduct Authority (FCA), the British version of the SEC, publicly stated that BitMEX was not regulated and warned everyone to stay away.

According to the FCA, BitMEX illegally offers its services to residents of the UK, without making efforts to obtain the necessary permits to work in the state. In this regard, traders from the UK are advised to refrain from using its service.

“We believe that this company provides financial services or products in the UK without our permission,” they said, referring to BitMEX, adding:

“Almost all firms and individuals offering, promoting or selling financial services or products in the UK must be regulated by us.

However, some firms operate without our permission, and some knowingly carry out investment scams.

BitMEX Not Regulated
This company is not regulated by us and is aimed at people in the UK. Based on the information we have, we believe that it carries out regulated activities that require permission.

BitMEX is not regulated by any organization based on the Seychelles Islands in East Africa, as far as we know.

They offer Bitcoin derivatives, trading for up to 100x margin with daily volumes of billions of dollars.

It gained fame partly because it offers an affiliate program, and also because it was the only one who remained with a decent profit after China closed crypto exchange there.

This surge of new users led to constant errors when placing or closing orders, while some accused BitMEX of trading on their platform.

Earlier, in February 2020, the FCA introduced new rules for managing cryptocurrency market participants in the region. The new rule requires Bitcoin-related businesses with incomes below £250,000 to pay a registration fee of just £2,000, which is much lower than £5,000 first proposed by the authorities.