Crypto

The UK’s FCA Shows a Keen Interest in Bitmex

Bitmex is one of the more interesting platforms related to cryptocurrencies. However, due to some very odd developments in recent years, the FCA is now officially investigating the platform.

Any company providing access to crypto-related financial services needs to be scrutinized.

Bitmex may Face Regulatory Scrutiny

This is especially true when dealing with margin trading for volatile assets.

In the case of Bitmex, the platform has seen some very unusual market developments.

Every now and then, some market seems to temporarily crash, liquidating millions of dollars in positions.

Not that long ago this happened to the XRP market.

For the FCA, that is a problem they are looking to investigate.

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Furthermore, the agency is concerned about Bitmex potentially operating in the UK without authorization.

Most crypto trading platforms do not pursue specific licenses in European countries.

Although Bitmex isn’t scamming users – or no one can prove that, at least – the lack of authorization is worrisome.

It seems possible that the company will need to cease its service in the UK, if push comes to shove.

Given how this article was only added a few days ago, one has to wonder what triggered the FCA to investigate.

Perhaps some UK users are growing disgruntled over their lack of protection on this platform.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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Tags: BitMexFCAuk

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