BitMEX Plans to Add Crypto Spot Trading, Custody Services

Crypto derivatives exchange BitMEX is considering to expand its offerings by adding spot trading, brokerage and custody as its three new services, 100x CEO Alexander Höptner revealed in a recent interview with Bloomberg.

“We have to very fast make up our mind how we want to approach these aspects and then see whether we could find a partner or whether we build something or buy something,” Höptner said.

Founded in 2014, BitMEX became a top cryptocurrency derivatives platform with its 100x leverage on futures instruments. However, it also faced heavy criticisms for offering sophisticated financial instruments with none or minimum regulatory oversights.

Höptner, the former Börse Stuttgart Chief Executive, took charge of the cryptocurrency exchange after Arthur Hayes, BitMEX’s Co-founder and public face, stepped down from day-to-day operations due to the lawsuit against him by US prosecutors.

Siding with the Regulators

The new BitMEX CEO is focused on making amends with global regulators. “We are approaching regulators where we are currently present, but we will also reach out to regulators where we are not,” he said.

Indeed, the exchange is investing heavily in boosting its compliance methods and earlier announced that every account is now KYC verified.

BitMEX’s entry into the spot market is logical given its loss of the market share to giants like Binance, Huobi and OKEx, all of which emerged as crypto spot trading venues. And, with the increased institutional demand in cryptocurrencies, custody and brokerage businesses also boomed, which may become BitMEX’s next big service area.

“We have to very fast make up our mind how we want to approach these aspects and then see whether we could find a partner or whether we build something or buy something,” Höptner added.

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