BitMEX reports a 35% lower on-chain risk exposure than global averages, demonstrating its commitment to cutting-edge security and regulatory adherence.
BitMEX, the world’s leading crypto derivatives exchange, has announced that it continues to maintain a low on-chain Anti-Money Laundering (AML) risk profile, successfully reducing its risk exposure from 1.7% in 2019 to just 0.2% in 2024. This 88% reduction in on-chain risk exposure over the past five years is a direct result of BitMEX’s collaboration with Chainalysis, combined with substantial investments in compliance controls and advanced blockchain analytics. With its on-chain risk exposure 35% below the global average of 0.304%, BitMEX demonstrates its steadfast commitment to security and regulatory adherence, setting a new industry standard since 2019.
As the industry navigates complex regulatory environments, BitMEX has turned compliance into an opportunity for leadership. Ongoing compliance efforts include bi-weekly updates to its Proof of Reserves and Liabilities, the use of geo-blocking technology to minimise sanctions-related risks, and regular external AML audits to ensure compliance accuracy. BitMEX also integrates advanced tools to monitor both on-chain and off-chain activity, reinforcing its comprehensive approach to risk management.
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Leveraging Chainalysis’ cutting-edge blockchain analytics, BitMEX has implemented robust mechanisms to assess, monitor, and mitigate on-chain risks. On-chain risk exposure refers to the risks associated with the flow of digital assets, especially concerning their origin or destination, and BitMEX’s proactive stance on mitigating these risks reinforces its leadership in safeguarding the crypto ecosystem.
Stephan Lutz said, “As we continue to prioritise the safety of our users and create a secure trading environment, our collaboration with Chainalysis has allowed us to stay ahead of evolving compliance standards. By integrating advanced blockchain analytics into our comprehensive risk management strategy, we have not only reduced on-chain risk exposure but also strengthened the trust our users place in us. This partnership ensures that BitMEX leads the industry in both security and regulatory adherence, giving our traders confidence in the safety of their assets.”
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The BitMEX compliance framework has evolved to reflect the highest standards in the industry. Central to this transformation is its risk-based approach to threshold tuning, which integrates insights from Chainalysis‘ detailed typologies and behavioural analytics. The platform’s commitment to data integrity is evidenced by periodic testing and scenario selection based on the latest threat models, ensuring that its AML programme consistently meets regulatory expectations.
“BitMEX has continuously taken an innovative and proactive approach towards enhancing their risk management strategy and prioritising consumer safety,” said Diederik Van Wersch. “The team has always valued a strong collaboration when working with Chainalysis, and it’s really impressive to see their investment in a skilled investigations and compliance team, and the adoption of advanced tools – which have yielded impressive results.”
BitMEX’s efforts highlight its leadership in setting new benchmarks for transparency and regulatory adherence in the crypto space. With the continuous implementation of rigorous AML programmes and real-time monitoring systems, the platform is uniquely positioned to offer a secure and compliant environment for traders worldwide.
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Source – prnewswire
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