Research: is BitMex not safe?
The cryptoindustry is perhaps one of the fastest growing spheres of our life. Trends in the world of Blockchain are changing almost at lightning speed, new projects are replacing outdated technologies. And even those projects that today seemed reliable and proven, tomorrow may appear in a completely different light. This is exactly what happened with BitMex, a major cryptocurrency exchange. Which has become a “high risk” project. What is the reason for such assessments? And who is behind the research and how should exchange users be? So, let’s figure it out.
Who shared this opinion?
It is impossible to discuss a research conducted without knowing who is behind its authorship. That is why, first of all, one should recall such a well-known analytical portal as Chainalysis. This is a fairly large and reputable company. Which is known for its own objectivity and attentiveness to the most subtle details. We should note that Chainalysis regularly checks even the most famous and large-scale projects. One of which was the BitMex exchange.
The popular platform, according to experts, is associated with huge risks and cannot guarantee 100% safe operation. The main reason for the experts of the analytical company is the recent litigation with US regulators. Chainalysis believes this is sufficient reason to label the exchange as a “high risk project.” Corresponding changes to the company’s valuation tables will come from October 13. Chainalysis warned all users about this so that they would not be surprised at the new status of their favorite site.
Moreover, now every transfer made using the exchange functionality will be additionally checked. A dedicated appraisal service, Chainalysis KYT, now marks transactions as “high risk”. The company also encouraged its digital security partners to review earlier transfers on the exchange. That is, the sanctions against BitMex are really serious. But how justified are the measures taken? Has BitMex Really Lost Its Trust By Getting Into Legal Proceedings? Should you give up using this platform? More on this in the next section.
What should BitMex users do? Real situation
In fact, the circumstances do not really favor BitMex. Nevertheless, we will not be as critical as representatives of Chainalysis and note that the exchange is still in demand among a huge audience. You should understand that even the appraisal apparatus has marked the platform only with the “high risk” status. There is and cannot be any question of direct unreliability or criminal schemes. Because BitMex is a serious and authoritative project. Yes, we do not argue, the situation with the American law enforcement agencies is doubtful. However, the proceedings are still in progress. The court has yet to find out whether the charges have a real basis for pressure on the representatives of the exchange.
Should you refuse to cooperate with the platform? Not yet. Most likely, the situation will be resolved quickly enough. Chainalysis is important to maintain the status of a credible analytical framework. Therefore, the slightest change in the reputation of companies immediately leads to sanctions.
But we have no doubt that the conflict will be resolved and the good name of BitMex will return. It remains only to wait a little. In such a difficult situation, it is important to keep an eye on current developments in the crypto industry. You can stay up to date with all the news of the world of Blockchain and finance with us. We publish only high-quality and interesting material. Thank you for attention. Good luck!