Popular cryptocurrency derivatives exchange, BitMEX, has announced that beginning from next month, Canadian residents will be restricted from accessing its platform.
The Seychelles-incorporated trading platform made this known in an official announcement today, stating that the move is as a result of the recent security laws established by the Ontario Securities Commissions (OSC) that prompts all exchanges to register with the commission.
Based on the development, the exchange stated that with effect from September 1, 2020, all Ontario-based users already onboarded to the platform would not be allowed to place orders that will open new positions or increase an existing position.
Sadly, the exchange further urged all Ontario users to close all existing positions before January 4, 2021, or risk having them force-closed.
No new Ontario user will be allowed to trade on the exchange from September 1, as any effort made by residents within this jurisdiction will be seen as a breach of its Terms of Service, the firm added.
Not comfortable with OSC rules
This is coming after the OSC regulators released a guide that aimed to determine whether its security legislation applies to cryptocurrency exchanges.
They believe “user’s contractual rights” to crypto assets may constitute a derivative that may be considered security in some jurisdictions.
“Based on our analysis, […] these Platforms are generally subject to securities legislation,” excerpts from the guideline reads.
BitMEX said it supports the OSC stance to establish regulations that aim to promote the growth of cryptocurrencies.
However, the exchange is still determined to restrict its Ontario users.
A BitMEX spokesperson disclosed that the development would only affect the exchange’s users in Ontario and not the whole of Canada.
Meanwhile, BitMEX, in a bid to mitigate malicious activities on its platform, announced a compulsory Know-Your-Customer (KYC) process scheduled for later this month that will require users to submit information that confirms their real identity.
