BitMEX Adds Seychelles, Hong Kong, and Bermuda to List of Restricted Jurisdictions

HDR Global Trading Limited ("HDR"), the Seychelles-based company that operates BitMEX, the world's largest crypto derivatives exchange, has decided to bar people resident in "the jurisdictions in which HDR-affiliated employees and offices are located" from accessing BitMEX.

BitMEX's blog post, which was published on Monday (August 19) says that it has been "working with regulators to help shape the industry, creating the standards that will help it go mainstream," and that it "welcomes" the "increased involvement of regulators with all the major players in the industry."

BitMEX says that, due to this regulatory oversight, it envisions "a new era of legitimacy for cryptocurrency exchanges: a future where market operation standards are clearly stated and maintained, where security is paramount, and where financial reserves are independently and frequently audited."

In order to ensure "the safety of your funds and the stability of the platform," HDR has decided to add Seychelles, Hong Kong, and Bermuda to its list of restricted jurisdictions

Also, BitMEX says that it is "working on independent audits of our Insurance Fund, market making activities, and tradeable contract structure," and intends to "share the results of these processes in the near future."

Featured Image Courtesy of BitMEX

Crypto Trading Volumes Plummet in June, CryptoCompare Report Shows

Cryptocurrency trading volumes plummeted in June to “roughly half of the daily volumes” seen in May, according to the CryptoCompare June 2020 Exchange review report.

The report found that top-tier cryptocurrency exchanges, those with a high ranking on CryptoCompare’s Exchange Benchmark,  saw their trading volumes saw their spot trading volumes drop by 36% last month to $177 billion, while lower-tier cryptoassets exchanges saw their trading volumes drop by 53% to $466 billion.

unnamed.pngSource: CryptoCompare

CryptoCompare notes that last month the highest recorded trading volume in a single day on top-tier exchanges was of $9.26 billion. In comparison, in March’s Exchange Review, the cryptoassets data provider revealed that the March 12-13 crypto market crash led to high in daily trading volumes, as $75.9 billion were traded across exchanges in a single day. Top-tier exchanges traded $21.6 billion that day.

It’s worth noting that the spot volumes did not hit an all-time high, even during the March market crash. In July 2019 and December 2017, when the price of bitcoin hit its all-time high near $20,000, spot volumes hit record highs.

In June, cryptoassets trading platforms charging traditional taker fees represented 76% of the total exchange volumes, while those implementing the tans-fee mining (TFM) model represented less than 23% of the cryptocurrency space’s spot volume.

Fee-charging exchanges, the report adds, traded a total of $455 billion in June, as their trading volume dropped 48% since May. Trading platforms using the trans-fee mining model saw their volumes drop 45% since May, as they traded $141 billion.

Exchanges using the TFM model are seemingly gaining market share. While in March they represented less than 20% of the spot trading volume, in June their market share was of 23%.  As CryptoGlobe reported, these trading platforms often have unusually thin order books and low traffic.

FCoin, the cryptocurrency exchanges that started using TFM, has passed trading and withdrawals earlier this year over the shortage of crypto worth up to $130 million. The firm’s founder revealed that the platform was not hacked, but instead an internal system error gave users more rewards than they should have received.

Featured image by Austin Distel on Unsplash.