September 22, 2020

Bitmex Restricts Ontario Residents as Mandated by Canadian Regulator

Bitmex Restricts Ontario Residents as Ordered by Canadian Regulator

Cryptocurrency derivatives exchange Bitmex will be restricting access to users from Ontario, Canada, starting the beginning of next month. The company says the restrictions are mandated by the Ontario Securities Commission (OSC).

Bitmex Stops Servicing Users in Ontario

Bitmex, a cryptocurrency derivatives trading platform that offers up to 100x leverage, announced Monday that it will be restricting access to residents of Ontario, Canada.

Starting Sept. 1, “we are restricting access to users who are Ontario (Canada) residents,” the exchange wrote. Affected users will be unable to place orders for new positions or to increase existing positions. Open positions will continue in accordance with the company’s terms for the relevant contract. However, they must be closed by Jan. 4, 2021, at the latest. Any position still open at that time will be forced closed, the exchange warned.

New customers who are Ontario residents will not be able to register on the platform after Sept. 1. Any attempt to register or trade on the exchange after that date will be a breach of the company’s terms of service. Bitmex clarified:

The restrictions are mandated by the Ontario Securities Commission.

The exchange says it will continue to work with the Ontario Securities Commission (OSC) and will keep its users updated.

The OSC has been active in the crypto space. In late July, the regulator gave asset manager 3iq Corp. a preliminary approval for the initial public offering (IPO) of the company’s Ether Fund. The regulator previously approved the IPO of 3iq’s Bitcoin Fund. Last month, it started a proceeding against cryptocurrency exchange Coinsquare and its executives for market manipulation and wash trades worth 590K BTC, among other charges. It also recently evaluated the defunct cryptocurrency exchange Quadrigacx, concluding that it “operated like a Ponzi scheme.”

The Canadian Securities Administrators, a council of the regulatory bodies of Canada’s provinces and territories, published guidance in January that subjects Canadian crypto exchanges to securities laws.

What do you think about Bitmex restricting users from Ontario? Let us know in the comments section below.

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