BitMEX, a key player in the crypto derivatives market, has officially ceased its trading operations after 11 years, although users can still access their accounts to withdraw funds.
Trading and Deposits Suspended, Withdrawals Still Possible
As of 04:00 UTC on Tuesday, BitMEX announced that trading, deposits, and new positions are no longer available. However, it reassured users that they can log in to withdraw their remaining balances. The exchange emphasized that deposits are no longer permitted.
Founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, BitMEX has urged its customers to withdraw their funds. For users who have verified their accounts under the know-your-customer (KYC) regulations and maintain balances, a monthly fee will apply. This fee is calculated as either 1% of the account balance annually or a minimum of $50, whichever is greater.
The closure of BitMEX marks the end of an era for an exchange that played a crucial role in developing perpetual futures, a product that has become a staple in the crypto derivatives market. Despite the shutdown, the platform reiterated that customer assets are not frozen, as withdrawals will remain available throughout the wind-down process.
In July, BitMEX announced its closure following a strategic assessment by its parent company, HDR Global Trading, as it faced challenges in retaining its competitive edge in the derivatives market it helped establish.
Additionally, BitMart also disclosed its shutdown in July, citing unfavorable market conditions after nine years of operation.
BitMEX’s closure occurs at a time when perpetual futures have grown to become some of the most actively traded financial products worldwide. Centralized crypto exchanges reported a staggering $3.4 trillion in derivatives volume just in August, with annual figures reaching as high as $50 trillion, according to CoinDesk research.