Cryptocurrency exchange BitMEX has added three new jurisdictions to its trade restrictions list.
HDR Global Trading Limited (HDR), BitMEX’s parent company, has added Bermuda, Hong Kong, and the Seychelles to its list of total trade access restrictions. BitMEX, based in the Seychelles, maintains arms in Bermuda and Hong Kong.
The three jurisdictions join the United States, the province of Québec in Canada, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, and Sudan on the list.
Per a company posting, BitMEX added the geo-blocks for regulatory reasons.
BitMEX’s announcement follows an investigation by the U.S. Commodity Futures Trading Commission (CFTC) as disclosed by Bloomberg in July.
The investigation was seeking knowledge on U.S. traders participation in the cryptocurrency exchange. BitMEX is not registered with the CFTC. BitMEX’s geo-blocks are based on IP-location, causing many traders to set up VPNs to bypass jurisdiction restrictions.
More recently, the U.K. Advertising Standards Authority (ASA) upheld a decision over the exchanges ad posting in a national newspaper. The ASA concluded the bitcoin advertisement, in honor of bitcoin's genesis block mining tenth anniversary this past January, was purposefully misleading the public.
BitMEX image via CoinDesk archives
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.