BitMex’s Derivative Options Decline as CFTC Presses Charge on the Exchange

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Open interest on Bitcoin derivatives have fallen down and has hit the yearly bottom of 61869 BTC
  • Open interest on the XBTUSD perpetual contracts (which are measured in BTC) has fallen down by 11% in just a few hours of the announcement
  • As of now, open interest has depreciated by almost 16% since the announcements

Recent research from Arcane Research has revealed that the open interest on Bitcoin derivatives have fallen down and has hit the yearly bottom of 61869 BTC. The trend is synced with the recent announcements of the CFTC charge on the cryptocurrency exchange. The last time when the open interest on the exchange experienced such lows was on April 30. Back then, the open interest nosedived to 61975 BTC. It seems like the recent CFTC announcements have widely affected the exchange’s open interest. 

BitMex Accused of Providing Illicit Cryptocurrency Trading to the Customers

Arcane Research has further mentioned that the open interest on the XBTUSD perpetual contracts (which are measured in BTC) has fallen down by 11% in just a few hours of the announcement. By now it has become evident that the customers are closing their positions in the BitMex crypto exchange. The U.S. Commodity Futures Trading Commission (CFTC) and federal prosecutors have accused the exchange of offering trades that were apparently unregistered under the competent authorities. It seems like BitMex has been offering its customers illegal crypto trading services and has even violated the Bank Secrecy Act. 

The Filing has Mandated the Exchange to Reimburse all the Profits Generated

The filing clearly states that BitMex has never been registered with CFTC and has broken several laws that are essential for integrity and vitality of the US trade markets. Moreover, the authority wants the exchange to reimburse all the profits generated from illicit activities to their customers and pay all the civil penalties and lastly to eradicate any such agreements with the customers that violate the laws. However, BitMex in its official blogpost has strongly disagreed to the charges pressed by CFTC. They have declared that from the very first they have always complied with the US laws. 

Open Interest in BitMex Fall Further by 16% Since the Announcement

This image has an empty alt attribute; its file name is rm6AQeqFUojEBN1JwpejBIcaH4_6T7SAGyyUs7NKYJHrY_f0fyoBqbnoJgCfOlq0ph8Tm0J30b3CMvi-scCf8cXWHroYO1Yh5VhTGC9Dj56Tf7gRCZAA1Ob2mw-d5WWbq3GqaK5g

However, the most recent updates from Arcane Research suggest that the open interest on BitMex has fallen further. From 61869 BTC, the open interest has fallen down to 45112 BTC in just a matter of a few hours. As of now open interest has depreciated by almost 16% since the announcements.

Join The Coin Republic’s Telegram Channel for more information related to CRYPTOCURRENCY NEWS and predication.

We Recomaned

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners