The Financial Conducts Authority (FCA), UK’s version of the SEC, has publicly stated Bitmex is unauthorized and has warned all to stay clear of it.
“We believe this firm has been providing financial services or products in the UK without our authorisation,” they say while referring to Bitmex, further adding:
“Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us.
However, some firms act without our authorisation and some knowingly run investment scams.
This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.”
Bitmex is not regulated by any entity as far as we are aware with it based in Seychelles in East Africa.
They offer bitcoin based derivatives trading at up to 100x margins with daily volumes in the billions of dollars.
It rose to prominence partly because it offers an affiliate program and also because it was the only one left standing with decent margins after China closed crypto exchanges there.
That surge in new users led to constant errors when placing or closing orders, with some accusing Bitmex of trading on its own platform.