Crypto derivatives exchange BitMEX is planning to expand beyond the derivatives business, and branch out with a wide range of new products, the exchange said in a blog post on 22 April.
According to the announcement, derivatives trading will remain at “the heart” of BitMEX’s business, however the exchange was planning to new product offerings, such as spot trading, brokerage and custody services, as well as information products and educational service.
While the exchange did not give a timeline for these products — saying they could arrive in the “coming months and years” — it stated its goal was to become “the largest, regulated crypto derivatives exchange” on the market. With that goal in mind, the exchange has already rolled out a mandatory identity verification process to KYC all of its customers. The new CEO of the exchange, Alexander Höptner, said in a statement:
“Every journey starts with an ambitious goal. Ours is to become one of the world’s largest regulated crypto derivatives exchanges and a powerful catalyst for change in the financial services industry. We will do this by greatly expanding our service offerings and by adding five new global business segments: Spot, Brokerage, Custody, Information Products, and Academy.”
BitMEX further said that to achieve its goal, it would be seeking “additional licenses in highly respected jurisdictions”, and that it has already started a new hiring process. Höptner himself is a recent hire, having become the CEO of the exchange last year, shortly after some of its executives were charged with violating the Bank Secrecy Act.
Last year, the U.S. Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC) accused executives of the exchange — including co-founders Ben Delo, Samuel Reed and former CEO Arthur Hayes — of offering customers illicit crypto derivatives trading services. All of them have now agreed to cooperate with the authorities regarding the case.
The ex-CTO, Reed, was arrested back in October, and later released after agreeing to comply with the court, and pay a $5 million bail bond. Hayes, the former CEO, has already surrendered to U.S. authorities in Hawaii, while Delo pleaded not guilty to the charges in March, and agreed to pay a $20 million bail bond.