BitMEX to Shut Down Following $100 Million AML Fine

BitMEX announced on July 23 that it will shut down permanently in September. The decision follows a $100 million fine levied against the cryptocurrency derivatives exchange for anti-money-laundering violations.

The exchange was founded by Arthur Hayes, who introduced perpetual futures in 2016 by removing expiry dates from traditional futures contracts. These instruments allow retail investors to bet on asset prices with high leverage, often featuring funding rates that can cost long positions over 10% of their value annually. While these products originated in the crypto market, they have since expanded to include gold, oil, and stocks.

In the United States, the market for perpetual futures shifted in May when Kalshi began offering onshore trading after receiving approval from the Commodity Futures Trading Commission. This regulatory move prompted a lawsuit from CME Group against the commission.