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Exchange of cryptocurrency derivatives BitMEX is making significant inroads across Europe. BXM Operations AG, one of its subsidiaries, has purchased a bank in Germany. We’ve reached that point in the adoption process. BitMEX purchased the bank with the “ambitious objective of developing a one-stop-shop for regulated crypto products in Germany, Austria, and Switzerland, and thereby becoming a strong player in Europe,” according to their announcement news release. Boom!

“Founded by our CEO Alexander Höptner and CFO Stephan Lutz,” the company has already paid and signed the forms.

“BXM Operations AG and Dietrich von Boetticher, the current owner of Bankhaus von der Heydt, have signed a purchase agreement, which will be finalised only with BaFin’s regulatory permission.” The acquisition is scheduled to close in mid-2022.”

The Federal Financial Supervisory Authority, or BaFin, is an “autonomous federal entity with headquarters in Bonn and Frankfurt.” According to Wikipedia, it “falls under the authority of the Federal Ministry of Finance.”

What Do BitMEX’s Executives Have to Say About the Transaction?

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“Through combining the regulated digital assets knowledge of Bankhaus von der Heydt with the crypto innovation and size of BitMEX, I believe we can establish a regulated crypto goods powerhouse in the heart of Europe,” said the company’s CEO, Alexander Höptner.

And CFO Stephan Lutz goes on to say:

“As Europe’s largest economy, Germany combines an innovative approach to digital assets with robust regulatory control and the rule of law – making it a great target for BitMEX’s European development.”

The purchase is consistent with the company’s overall strategy. They recently launched “BitMEX Link in Europe,” an innovative brokerage service based in Switzerland that promotes digital asset trading. According to their website, it is a “platform that enables traders to utilize the opportunities of 24/7 crypto markets.” As the world moves away from analog banking systems, we make the future available to all.”

Previous Run-ins With The Law

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Trauma is at the root of BitMEX’s fixation with regulation and compliance. The CFTC charged the company in October 2020 for accepting US clients without establishing anti-money laundering and Know Your Customer protocols. As a result, According to Bitcoinist:

“According to an additional agreement accepted by the Financial Crimes Enforcement Network, BitMEX will be required to pay a civil monetary penalty of $100 million” (FinCEN). The court’s judgement prohibits the crypto platform from “future violations of the Commodity Exchange Act (CEA) and the CFTC’s regulations.”

Since then, BitMEX has worked hard to maintain its impeccable reputation.

How Much Do We Know About Bankhaus Von Der Heydt?

The bank has been in operation for 268 years. They reminisce about the past on their website:

“Since our inception in 1754, we have had an interesting history.” We conducted one of the first securities issuance in Germany in 1835. The foundation for the expansion of the Prussian railway network was created with the help of this issue.

Today, we are one of the first banks to employ blockchain technology to make financial history.”

The bank already provides a number of services that are based on “blockchain technology.” That piqued interest in the matter could have been what drew BitMEX in the first place. In any case, before we celebrate the historic acquisition, let’s wait for BaFin’s clearance.

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