Canadian regulators have forced the BitMEX cryptocurrency exchange to halt operations in the province of Ontario.
The BitMEX shutdown was carried out due to the orders of the Ontario Securities Commission (OSC). However, the OSC has given no reason for this course of events.
BitMEX relays the bad news
In an official blog post, the peer-to-peer trading platform informed its users of this shutdown. The closure for the 14.57 million residents of Ontario will take effect on September 1, 2020, at 00:00:00 EST.
The blog states, “This will mean that existing customers who are Ontario residents will not be able to place orders that would open a new position or increase an existing open position. Open positions will continue in accordance with the terms of the relevant contract but must be closed by 00:00:00 EST on 4 January 2021 at the latest.”
BitMEX adds, “On 4 January 2021, any open positions will be force-closed so we encourage Ontario-resident customers to close all positions as soon as possible before then. Ontario residents seeking to register on BitMEX for the first time after 1 September 2020 will not be permitted to trade on BitMEX and any such attempt to do so will be a breach of our Terms of Service.”
Supporting regulatory efforts
Despite the action of the Ontario Securities Commission, BitMEX does support the OSC. The peer-to-peer cryptocurrency exchange says it supports the “efforts of regulators to help establish standards for cryptocurrency products that will underpin the advancement of this rapidly growing asset class.”
BitMEX goes on to say that it will continue to work with the OCS in regards to the Ontario market and will keep customers based in Ontario updated of any developments.
BitMEX has run afoul of regulators in other regions. The platform has been shut down in the Canadian province of Quebec (with a population of 8.45 million) as well. Other areas that have seen the platform restricted include Hong Kong, Iran, Japan, North Korea, Cuba, Crimea, Syria, and Sudan.