Embattled BitMEX hires Malcolm Wright as Compliance Czar

Malcolm Wright, a highly experienced Compliance guru is charged with leading BitMEX & 100x Group’s compliance efforts globally.

By · Oct 13, 2020 . 6min read

BitMEX hires Malcolm Wright  latest news

BitMEX, the derivatives exchange that was recently indicted by DOJ and CFTC has announced hiring Malcolm Wright as its new compliance czar.

Malcolm Wright, a highly experienced Compliance guru, serves among several global communities. Now charged with leading 100x Group’s compliance efforts globally, Malcolm will be reporting directly to Vivien Khoo, Interim Chief Executive Officer and Chief Operating Officer. Recall that Arthur Hayes resigned his position as the CEO of the indicted Bitcoin derivatives exchange. Vivien Khoo then stood in as the Interim CEO/COO.

Malcolm’s first litmus test would be to complete the exchange User Verification Programme. This is one of the cruces of BitMEX exchange indictment as well as the co-founders. The DOJ and CFTC not only accused BitMEX of running an illegal derivatives exchange but also charged them for targeting US investors. As per the indictment, the regulator

charges BitMEX with violating CFTC rules by failing to implement know-your-customer procedures, a customer information program, and anti-money laundering procedures.

As for Malcolm, the compliance Czar, this is a new era for BitMEX who takes compliance very seriously. Malcolm reiterated the importance of compliance for exchanges.

“For me, compliance is non-negotiable, and a prerequisite for exchanges to be embraced by regulators and institutional investors alike. My vision is for 100x Group, through the BitMEX platform, to play a lead role in shaping how this industry collaborates with regulators to ensure everyone can safely avail of digital markets.”

Hence, unlike the era of Arthur Hayes, where the exchange seeks out jurisdictional arbitrage, BitMEX will be working closely with regulators. Most especially US regulators.

Malcolm Wright to restore BitMEX to its glory.

BitMEX no doubt since its establishment in 2014 has controlled the turf of derivatives trading. It has facilitated in trillions of dollars and earned as much as a billion-dollar in fees. It even held up to one percent of Bitcoin’s 21 million total supply at some point. However, as we reported in the indictment by DOJ, customers panic-withdrew from the exchange’s treasury.

However, with BitMEX’s hire of Malcolm as their new compliance Czar (it’s not on record that BitMEX had one before now), perhaps things will be changing for better. Many exchanges like Binance, FTX, Huobi, etc., are working assiduously to gain massive share in crypto futures and derivatives trading. Perhaps this is an opportunity for them to deepen their position while BitMEX is doing all to fix itself.

Follow Cryptodose for daily updates.

         All News