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August 9, 2022
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BitMEX Controversy – Is There An Alternative In Cryptocurrency Margin Trading? –

The BitMEX controversy is an extremely delicate topic in the cryptocurrency industry. The world’s largest cryptocurrency derivatives trading platform was once considered an industry authority. Can you say that in 2021, BitMEX is still for sure when it comes to trading with leverage? Are there alternatives?

BitMEX controversy


The controversy surrounding BitMEX dates back to 2018. It was then that a comprehensive one was published article by Matthe Collins. In his post on the Medium portal, the author highlighted the topic of insider trading on the BitMEX platform. In this article, we can read how it was discovered in practice that BitMEX allows some of its investors to certain special trading privileges. In practice, it turned out that an unofficial market making group operates in the BitMEX environment with the consent of the management board. In practice, these activities could manipulate the margin trading conducted on the platform. This, in turn, caused a lot of dissatisfaction among the community – it turns out that BitMEX treats some internal traders better than other users.

The whole problem was closed by the Hasu user in an additional article on the medium portal. According to him, BitMEX has committed a series of unethical practices. He closed his accusations on three points:

  1. BitMEX trades against its clients.
  2. The platform uses its server problems as a weapon.
  3. The stock market monetizes the liquidation of client positions through the insurance fund.


However, the above BitMEX controversy is only the tip of the iceberg. After the above accusations it is time for news of a larger caliber. In 2015, BitMEX resigned from operating in the USA – the reason was the lack of appropriate permits from the regulator – CFTC. The case concerned mainly elements related to the KYC and AML processes.

Despite the 2015 ban, many US users still use the platform via VPN servers. A few years later, the case returned with new impetus. The creators of the platform have been accused of breaking the CFTC recommendations – the Commission also noted that the negligible level of client verification by the exchange is synonymous with the possibility of handling illegal transactions worth billions of dollars. The case became extremely high-profile and he wrote extensively about the events Bloomberg and New York Times.

Founders of BitMEX

Cryptocurrency Margin Trading in 2021

The BitMEX controversy has effectively disgusted some margin trading investors. According to many investors who witnessed the platform’s unethical activities in 2018, trading in derivatives on a poorly regulated cryptocurrency market is a bad idea.

Bitmex in 2021 the most popular is w South Korea, Great Britain and Russia. It seems that Western markets, with a few exceptions, are no longer attractive to this platform.

BitMEX Controversy - Is There An Alternative In Cryptocurrency Margin Trading? - 23

Sources of desktop visits on Bitmex

However, does the tragic history of BitMEX have to mean an end to cryptocurrency margin trading? Over the last three years, the regulations in the area of ​​KYC and AML of cryptocurrency platforms have been improved, and the level of credibility of exchanges has increased. Trading with leverage can be found at such giants as Binance – but this is only an addition to the normal functionality of the exchange.

In 2021, however, platforms focused mainly on margin trading are also developing. A great example is the constantly evolving platform Geco.one. The Polish team can be proud not only of the constantly growing volume, but also of meeting the legal requirements for the operation of such a specialized platform. Margin trading Geco.one shows that the reputation corrupted by BitMEX can be successfully repaired.

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