Yesterday, the UK Financial Conduct Authority (FCA) released statement It accuses BitMEX of providing financial services without a proper licence, and advises British citizens to stay away from this controversial platform.

BITMEX platform accusation

This statement issued by the British Financial Supervisory Authority warns against any involvement in dealing with the BitMEX platform.

The warning and accusation leveled against BitMEX does not refer to direct customer fraud.

However, it does indicate that operating without a proper license is illegal and likely to be attributed to fraudulent activities.

This is not the first step in Britain taken against BitMEX and similar platforms.

Last June, the Federal Bureau of Investigation initiated a ban on crypto-derivatives, which it recommended later on.

Read:SEC files a lawsuit against a fraudulent crypto project marketed by a Hollywood star

Also, last October the country’s Advertising Standards Authority (ASA) filed a complaint against an advertisement published by BitMEX in British newspapers.

The UK is one of many countries now taking steps to dominate the crypto derivatives markets.

The UK regulators consider them to be unregulated and high-risk financial products at present.

Since the most popular platform offers this type of trading, it stands at the crossroads, so you are striving to relieve the pressure on it.

Organizing will be very difficult

BitMEX is part of the cryptocurrency exchange industry, and it has become more complex with the introduction of new financial products.

While regulators are well aware of this activity, the borderless nature of blockchain technology makes regulatory compliance a major problem.

For its part, BitMEX has always insisted that it is an honest institution, and urges customers to follow all relevant laws.

However, leverage options result in losing massive amounts of cryptocurrency trading across their platforms every twenty-four hours.

The platform is accused of facilitating, either directly or indirectly, the market manipulation that has become a hallmark of the crypto arena.

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It is therefore not surprising that governments seek action against it.

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This situation will only become more complicated when legacy financial institutions are involved in cryptocurrency trading.

While these players cooperate fully with regulators, their presence will compel governments to take greater steps to treat cryptocurrencies as a new asset class.

Crypto advocates have long advocated the need for legal recognition of blockchain assets as a way to achieve mass adoption and help prevent fraud.

Accordingly, many financial regulatory bodies, whether in the United Kingdom or in different regions of the world, have to make a greater effort to regulate the industry and prepare rules and standards that can be bought and traded legally, free from fraud and manipulation.

Read also:

The Group of Twenty “G20” urges governments to implement the crypto standards set by the “FATF”

SEC asks BCOT to return funds to investors and re-issue its tokens as securities