How to use Bitmex in the USA?
Bitmex is a popular P2P trading platform that specialises in cryptocurrency trading. They are the biggest margin trading platform for the world’s first digital currency, Bitcoin. Their offer for 100x leverage is quite attractive for people around the world and the anonymity offered by bitcoin makes Bitmex an ideal destination for crypto traders.
The Exchange started in 2016 and until 2017, pretty much anyone could join and start trading on the platform. But last year, they suddenly announced US-based traders cannot operate on Bitmex platform. Financially this would be a huge problem as the US holds some of the highest volumes of bitcoin.
Why were US-based traders banned?
Bitmex did not give any reason for this sudden change in policy. Many believe the exchange came under political pressure from the US government to comply with their regulatory requirements. Instead of opening themselves up for a regulatory watch, Bitmex is said to have decided to take an easy way out by banning US-based traders.
Fast forward a year later Bitmex just reached $2.13 billion worth of trade within 24 hours. They even breached the 1 million XBT trades on their platform in July 2018.
Are there US-based traders on Bitmex right now?
According to multiple sources, there are hundreds of US-based traders on Bitmex even now. Apart from an IP check, there is no personal id verification for account creation or when depositing bitcoin. So, many US-based traders are using secure VPN tunnels to register and sign in to Bitmex.
Personal wallets do not have any kind of geo restrictions, so getting around the geo block is probably the easiest route for US-based traders.
While most Trading Exchanges demand full id verification before allowing you access to higher margin value, Bitmex does not go that route. All transactions happen in Bitcoin, and the cryptocurrency is free from any country-specific regulation.
Bitmex also does not allow any deposit or withdrawal in fiat currency. But despite this, they may have come under pressure to comply with US law since American residents were using the facility.
In their terms of service, Bitmex has specified, they can demand an id proof at any time. However, there are no reported incidents where this has happened.
So if you are based in the US, a strong and secure VPN like NordVPN will get you access to Bitmex, without any trouble.