BXM Link AG has been granted membership confirmation from the Financial Services Standards Association (VQF), a Swiss self-regulatory organization (SRO) officially recognized by FINMA, the Federal Financial Market Supervisory Authority.
The VQF membership granted to BXM Link AG, which will be “completely finalized soon after a few final regular checks, validates that it is operating in line with Swiss anti money laundering requirements and represents a key step as BitMEX seeks to become regulated in key jurisdictions around the world.”
In addition, it signals “the launch of BitMEX Link activities in the region, after the establishment of the company’s first European office in Zurich at the beginning of 2022, where it has been actively building out the local team.”
BitMEX Link is BitMEX Group’s 24/7 brokerage service “for the trading of digital assets.” It aims “to attract traders, pro traders and institutions with a range of services planned covering spot, structured products, and OTC all in one place, offering transparent, simple and safe access to crypto markets.”
Alexander Höptner, CEO of BitMEX and founder of BXM Operations, said:
“Switzerland is building an impressive crypto ecosystem with all the hallmarks of an attractive destination for companies like ours that are growing and innovating responsibly. We see investment in Switzerland as crucial to broaden the services we offer and expand our global impact, and the VQF membership is a key step in this path, and a milestone in our efforts for becoming a regulated business in critical jurisdictions around the world.”
Ivo Sauter, CEO of BitMEX Link and head of BitMEX’s Swiss office, said:
“Switzerland has a recognised status as a regional hotspot for great talent, with a growing blockchain ecosystem and an advanced institutional framework. This made it a natural choice for our first European presence and we have been working hard since then. The VQF membership will allow us to continue developing the BitMEX Link offering in line with Swiss AML regulations and focus on driving more business opportunities in the coming months.”
The BitMEX Group has been “pursuing the ambitious goal of establishing a one-stop shop for access to crypto products.”
The new VQF membership “bolsters the company’s operations in Switzerland, which has become an important hub within the European crypto landscape.”
BXM Link AG plans “to operate BitMEX Link, BitMEX Group’s innovative 24/7 crypto brokerage service for the trading of digital assets, offering a one-stop shop for spot, structured products, and OTC.”
BXM was “founded in 2021 and is owned by Alexander Höptner, CEO of BitMEX, and Stephan Lutz, CFO of BitMEX.”
As covered last month, Gregory Dwyer, a former head of business development at BitMEX, has pleaded guilty to a single charge of violating the Bank Secrecy Act, according to a report in WSJ.com.
Dwyer was one of BitMEX’s first employees during a period of rapid growth for the crypto trading platform. Registered in Seychelles, BitMEX was at one time a top crypto platform that enabled highly leveraged trading in crypto derivates but allegedly incorporated little or lax AML – KYC rules. The report states that Dwyer was involved in the “flouting” of these rules. Prosecutors claim that US customers were able to access the trading platform – even when BitMEX said they were blocked.
Dwyer originally pleaded not guilty but now has cut a deal with the prosecutor on the single charge which involves a $150,000 fine.
Two other co-founders, Arthur Hayes and Benjamin Delo, cut a deal where each paid a $10 million penalty.