Popular P2P trading platform, Bitmex has announced the launch of its proof-of-liability system. The exchange announced the development in a blog post on Thursday. As announced, BitMEX launched the system to allow depositors to verify their liabilities in the exchange liability balance.
According to BitMEX, self-verification does not require a third-party auditor. As revealed, account balances becomes randomly split into multiple leaves of the Merkle tree. This, in turn, ensures the privacy of customers’ details. In addition, the protocol plans to release reserve and liability snapshots on Tuesdays and Thursdays of every week.
Notably, BitMEX advised users to use their accountNonce to search for their liability in the leaves of the Merkle tree. Worth noting that multiple accountNonce or individual snapshots can be used. As revealed, this nonce seems available and accessible to every BitMEX depositor.
According to BitMEX, depositors can find this nonce on the website when they log into their account. The nonce can be found on the “My Account” page. Through the nonce, users can search across all leaves of the Merkle tree looking for a collision. BitMEX says the leaves where the collision occurs is their balance.
BitMEX’s acquisition of regulatory approval in Italy
Notably, the launch of Proof of liability system comes barely two months after the exchange obtained a regulatory approval from Italy. According to BitMEX, it obtained the license in order to provide digital wallet services to users in Italy.
According to BitMEX, it intends to offer spot trading products and services to Italian customers. The exchange must, however, operate in compliance with local regulations. In addition, the main responsibility of OAM as stipulated by law is to regulate the conducts of business, especially anti-money laundering and fiscal controls. According to BitMEX, the newly obtained licenses further reaffirmed its stance to continually work together with regulatory bodies.
BitMEX CEO, Alexander Hoptner, said the license acquisition manifested as a great stride in the exchange journey of becoming a global jurisdiction. He further that BitMEX intends to operate in line with Italian anti-money laundering regulatory requirements. The CEO further noted that the acquired license proves that the exchange possesses an efficient regulatory framework. He opined that this framework allows users to trust the exchange crypto operation. Also, the exchange recently obtained a membership approval for BXM Link AG.
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