BitMEX, the Seychelles-based cryptocurrency derivatives trading platform, is closing off its platform to three jurisdictions, the firm announced Monday. According to BitMEX, to ensure the safety of its users' funds and the stability of its platform the firm has decided to restrict users based in Seychelles, Hong Kong, and Bermuda from accessing its services. These three jurisdictions are where BitMEX parent HDR Global Trading Limited's users and offices are located.
"This change will have no financial impact on the business and will affect very few people. The BitMEX team will be reaching out to those who are affected," the firm said in a statement. BitMEX also added that the firm welcomes the involvement of regulators in the cryptocurrency industry and that regulators will provide "a new era of legitimacy for cryptocurrency exchanges: a future where market operation standards are clearly stated and maintained, where security is paramount, and where financial reserves are independently and frequently audited."
BitMEX's move comes after reports that the U.S. Commodity Futures Trading Commission is probing the firm to determine whether it broke regulations by allowing U.S. traders onto its platform. BitMEX is not registered with the CFTC and counts the U.S. as one of the jurisdictions in its restricted access list.