BitMEX finally joins Global Digital Finance, an association pushing for the adoption of digital financial assets.
BitMEX’s parent company, 100x Group, is the one that joined GDF. With the 100x being a GDF patron member will foster a more inclusive and an entirely regulated financial system from the BitMEX announcement on Jan 21.
100X move to partner with GDF is to encourage collaboration between public and private sectors to promote crypto adoption. Only when the private collaborate with the public will there be a wide-scale adoption of crypto. That is according to the CEO of 100X Group, Alexander Hoptner.
GDF was started with a mission to build an efficient and transparent ecosystem for digital assets by merging crypto assets industry with the financial service professionals. The association was launched in March 2018, and so far, it has high profile members such as Coinbase, Huobi, and ConsenSys.
Even though 100x just joined GDF, its chief compliance officer joined it back in 2018 and so far, is the chair of its advisory Group and helps to chair the GDF Anti-Money Laundering working group.
100X joined GDF at a time full of uncertainties considering it is just recently that BitMEX faced legal issues with the Unites States securities regulator. Towards the end of 2020, BitMEX was accused of selling unregistered derivatives as IPO’s to US retail investors by the Commodity Futures Trading Commission. Contrary to expectation, BitMEX has not yet responded to the accusations but has been given a grace period of up to Feb 12, 2021, to respond to the allegations by CFTC.
Even though BitMEX has not responded directly to CFTC, it has improved its regulatory and compliance status. After the charges, BitMEX has reported a 100% verified trading volume and user base. In the spirit of that, it announced a new collaboration with Chainalysis, a blockchain analytics firm to be able to keep track and stop illicit transactions. The firm announced that it has worked on its KYC checks and beginning of the year researched its KYC database.
The future of digital finance is looking up with aggresive crypto adoption generally. The main influencers of the industry are institutional investors who are turning to cryptocurrency as a safe haven.
There is a rise of central banks that are exploring their own cryptocurrencies. So far, more than 80% of central banks are working on their CBDC’s.
Image by Nattanan Kanchanaprat from Pixabay
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