Connect with us

Blockchain

Is BitMEX Legal?

Unfortunately, there is no short answer. Although strictly illegal in some countries, and legal in a few others, BitMEX is …

Read moreIs BitMEX Legal?

The post Is BitMEX Legal? appeared first on CoinDiligent.

Republished by Plato

Published

on

Unfortunately, there is no short answer. Although strictly illegal in some countries, and legal in a few others, BitMEX is in a gray legal area in most. 

The topic is very nuanced, but on a top-level, whether BitMEX is legal for you, depends on your nationality and the jurisdiction that you reside in. 

About the company

BitMEX is registered as “HDR Global Trading Limited” in Seychelles and has offices in San Francisco, Hong Kong, and Singapore.

However, even though the firm offers sophisticated Bitcoin derivatives, it does not have a broker license. 

This makes it illegal for BitMEX to operate in countries with strict regulatory market oversight, like the US or China.

Banned countries

Since BitMEX does not have broker licensing for any country, it is forced to ban citizens from countries where it can’t comply with regulations.

The list of restricted jurisdictions includes United States, Québec Province, Hong Kong, China, and Cuba.

That said, the derivatives exchange only enforces this ban by reading the user’s IP address. Unlike other exchanges, BitMEX does not require users to complete identity verification.

Hence, it would be reasonably simple for citizens from any restricted country to bypass the ban, by using a VPN service provider.

Controversies

Since its launch, BitMEX has been stricken by several controversies. 

Namely, its in-house trading team that trades against BitMEX customers, strange price action that seems to target liquidation levels and stop-losses of traders, and questionable usage of the exchange’s colossal insurance fund.

Such practices would be unlawful, in many countries, if conducted in traditional financial markets. However, due to Bitcoin’s unregulated nature, BitMEX has been turned the blind eye for now.

BitMEX Lawsuits

The fact that BitMEX legally operates in an offshore jurisdiction, makes it very hard to bring the company to court. 

However, this is not to say that it hasn’t happened yet. In a recent lawsuit, BitMEX has been accused of money laundering and market manipulation. 

Further, BitMEX has also been sued by an early seed investor in the company, who claims that BitMEX owes him $50m worth of equity.

Conclusion

If you don’t reside in one of BitMEX’s restricted jurisdictions, then the exchange is legal to use for you. 

However, it is uncertain if the exchange’s platform is legal as a business, to begin with, due to the lack of KYC/AML procedure in the sign-up process, as well as the lack of a broker license.

This is a bigger concern for the exchange operators though, and not one for its users.

pascal thellmann

Pascal Thellmann is an algorithmic trader mostly focused on crypto breakout strategies. He started CoinDiligent to share his learnings and give paid access to some of his automated trading strategies. You can get in touch with Pascal on LinkedIn or Twitter.

Source: https://coindiligent.com/is-bitmex-legal

Blockchain

Blockchain and crypto will challenge current finance, Nigeria VP says

Republished by Plato

Published

on

Nigeria’s vice president, Yemi Osinbajo, delivered a speech at an economic summit on Friday in which he spoke positively of crypto and blockchain. 

“There is no question that blockchain technology generally, and cryptocurrencies in particular, will in the coming years, challenge traditional banking, including reserve banking, in ways that we cannot yet imagine,” Osinbajo said on Friday during the Central Bank of Nigeria, or CBN, Bankers’ Committee Economic Summit. “We need to be prepared for that seismic shift, and it may come sooner than later,” he said.

The Nigerian vice president also noted the broadness of the crypto industry, mentioning decentralized finance, or DeFi, in the mix. “Decentralized finance, using smart contracts to create financial instruments, in place of central financial intermediaries, such as banks or brokerages, is set to challenge traditional finance,” he said. 

Osinbajo’s speech, which included a number of other points, is posted on his YouTube channel. The Nigerian vice president also tweeted out a video clip highlighting of some of his crypto comments from his talk.

“The point I’m making, is that some of the exciting developments we see call for prudence and care in adopting them and these have been very well-articulated by our regulatory authorities,” he said, adding:

“But we must act with knowledge and not with fear. We must ensure that we are in a position to benefit and in a position to prevent any of the adverse side effects, or any of the possible, even criminal, acts that may arise in consequence of adopting or taking any of these options.”

The comments come in contrast to recent developments in Nigeria. Earlier in February, Nigeria forbade banking interactions with crypto exchanges, as per a ruling from its central bank. The CBN’s governor also called crypto assets illegitimate. Bitcoin recently traded at a significant premium in the region.

Source: https://cointelegraph.com/news/blockchain-and-crypto-will-challenge-current-finance-nigeria-vp-says

Continue Reading

Blockchain

‘Bitcoin could reach $1 million or $1, and may do both of those’

Republished by Plato

Published

on

While many analysts predict that either Bitcoin could increase to a million or fall to a dollar, a popular businessman and investor based in the US thinks that the asset could do both!

In a recent interview with Joe Kernen at CNBC’s Squawk Box, Internet analyst Henry Blodget of the dot com era fame said: 

Bitcoin could go to $1 million… it could also go to $1. And in fact it may do both of those

In addition, Blodget, who also served as the head of the global Internet research team at Merrill Lynch, is unconvinced about the asset’s value proposition. He claimed that Bitcoin as an inflationary hedge and the narrative surrounding its value as ‘digital gold’ were “stories”. He further added: 

But the stories that we tell about why relative to the value of gold or other currencies, they’re ludicrous.

In his opinion, Bitcoin can trade just about anywhere because it does not have any fundamental backing. He said that unlike traditional stocks, “which usually does have some relationship ultimately to a fundamental,” of a company, “Bitcoin doesn’t, so that means it can trade anywhere.”

The entrepreneur thinks that crypto exchange Gemini’s CEO Tyler Winklevoss could eventually be “exactly right,” in his forecast that the asset could surge to a million. However, Blodget said:

If people were to decide that for the next couple of hundred years Bitcoin is where you park your money when you take it out of the fiat system, OK, it’s possible.

Interestingly, while crypto Twitter and Bitcoin enthusiasts, in particular, called out the analyst’s criticism, they commended the interviewer’s counter-argument. CNBC’s Joe Kernen seemed to even “speak the language” of the crypto space as one twitter user named @HodlBells noted:  


Sign Up For Our Newsletter


Source: https://ambcrypto.com/bitcoin-could-reach-1-million-or-1-and-may-do-both-of-those

Continue Reading

Blockchain

Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

Republished by Plato

Published

on

NetCents, a cryptocurrency payments company, today announced it has signed an agreement with Vesto.io to pave the way for DeFi access in the NetCents platform.

Vesto, is a San Francisco-based company that has created a platform allowing users to choose from multiple DeFi protocols in a virtual supermarket. NetCents (with regulatory approval) intends on enabling a portal to the Vesto infrastructure from the NetCents wallet in order to facilitate user’s adoption of DeFi investing in an efficient and easy-to-understand interface.

“We have seen the DeFi space explode over the past year, but for it to reach the next level – the tools and the process has to be attainable by the novice crypto investor. We will be adding a layer of simplification to the process so that individuals can have their savings actually working for them without the complexity of the current platforms. Individuals have the right to lend their money at market-based rates instead of getting 1% interest on their savings that the commercial banks are offering.”
– Clayton Moore, NetCents Founder & CEO

LOI

The Letter of Intent  (LOI) contemplates a Joint Venture between parties and an option for NetCents to invest in Vesto and hold a significant ownership stake in the company at a future date.

Management of NetCents also informed investors that many of the concepts embraced by these DeFi platforms have not been vetted by the many authorities that regulate financial products. NetCents intends to work together with regulators to navigate this landscape and resolve it with a compliant product.

For Example: Fintech businesses seeking to bring a novel product or service to the market can seek regulatory relief through regulatory sandboxes such as the Ontario Securities Commission’s LaunchPad or the British Columbia Securities Commission’s SandBox.

Furthermore, businesses that distribute, trade, or advise in crypto assets that are securities are required to comply with securities laws (in particular, registration and prospectus requirements), which can be onerous. There are many exemptions for specific types of distributions, trades, and other activities and NetCents intends to research these exemptions rigorously. These exemptions, at a high level, may limit the types of investors that can participate or the investment amounts, or may require the preparation of disclosures to investors and filing of a disclosure document.

Source: https://www.cryptoninjas.net/2021/02/27/crypto-platform-netcents-to-offer-users-access-to-defi-protocols-thru-vesto/

Continue Reading
Blockchain4 days ago

Ankr adds Eth2 futures (fETH) to its staking system

Blockchain4 days ago

Peter Schiff Now Discusses Bitcoin More Often Than His Beloved Gold

Blockchain4 days ago

Long Blockchain Corp has officially been delisted by SEC

Blockchain5 days ago

DeFi Protocol Primitive Finance Self Hacks to Prevent Exploit

Blockchain5 days ago

Kraken Daily Market Report for February 21 2021

Blockchain4 days ago

NFT Platform Ethernity to Launch IDO on Polkastarter

Blockchain20 hours ago

NextGen Blockchain Platforms Self-Organize to Win Government Contracts

Blockchain4 days ago

Bitcoin falls to $45K in sequel to 20% BTC price crash

Blockchain4 days ago

New report predicts NFTs will explode in popularity during 2021

Blockchain4 days ago

Kraken users demand refunds over flash-crash liquidations

Blockchain3 days ago

Optimized Ethereum Mining Settings for Nvidia RTX 3060 Ti, RTX 3070, RTX 3080 and RTX 3090 GPUs

Blockchain4 days ago

Bitcoin Cash, Dogecoin, Monero Price Analysis: 22 February

Blockchain4 days ago

MoneyGram suspends Ripple partnership, citing SEC lawsuit

Blockchain3 days ago

Elon Musk Reacts to Tesla Losing $15 Billion After Investing in Bitcoin

Blockchain4 days ago

Bitcoin Price Analysis: 22 February

Blockchain4 days ago

$24 million lost in second-largest day of DeFi liquidations

Blockchain1 day ago

Gemini collaborates with The Giving Block and others, adds donations option

Blockchain5 days ago

XRP Price Analysis: 22 February

Blockchain4 days ago

Leading DeFi Projects to Follow in 2021

Blockchain5 days ago

Charted: Ripple (XRP) Rallies 20%, Why Dips Could Be Attractive

Trending