Bitmex boosts its AML and trade monitoring

Major crypto exchange BitMEX today announced its partnership with Eventus Systems, a software and compliance firm, which would allow the platform to “bolster” its Anti Money Laundering (AML) and trade surveillance monitoring. According to the announcement the firm said: 

Through integrating the Eventus Validus technology into our existing trade surveillance and AML processes, we will be able to more efficiently screen out bad actors and increase proactive monitoring for unauthorised trading activity on the BitMEX platform.

Chief Compliance Officer of 100x Group, the holding structure for HDR Global Trading, Malcolm Wright, believed that Eventus would support BitMEX’s “critical” trade surveillance and AML functions and that this would help the platform mature its crypto-asset compliance capabilities. Wright said in a statement:

Eventus has extensive expertise and experience not only with digital asset exchanges but also within the traditional financial sector. Choosing Eventus is part of our ongoing commitment to achieve this vision as we execute signature initiatives like our User Verification Programme.

This development comes a month after the US Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against BitMEX’s co-founders Arthur Hayes, Ben Delo, and Samuel Reed. The charges accused them of operating an “unregistered trading platform” and for violating CFTC regulations which includes breaking the anti-money laundering rules.

The complaint further charged BitMEX with violating CFTC rules by “failing to implement know-your-customer procedures,” and a customer information program, and anti-money laundering procedures. It also mentioned BitMEX’s parent company, HDR Global Trading Limited, and other firms such as 100x Holdings Limited,

In a response to the accusations, BitMEX had called these charges a “ heavy-handed decision”, and intended to defend the allegations “vigorously.” At that time, BitMEX said they had always sought to comply with “applicable” US laws, “as those laws were understood at the time and based on available guidance.”