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How expensive/difficult would it have been for bitmex to register with the SEC and/or CFTC? Jumped through all of the hoops, so to speak?

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Registration has nothing to do with it. The lack of AML/KYC controls is the issue. Implementing these would have likely been extremely costly to their business in the form of much lower growth.

Yeah, just look at Gemini/Coinbase liquidity/volume vs. the offshore cowboy exchanges and it's clear that following regulations has a huge cost.

Besides not getting any users, you're also not able to offer products anyone wants. Current "US regulated" exchanges are just money onramps with a fraction of the volume/profit seen in the rest of crypto.

Also keep in mind that currently crypto is a lot bigger outside of the US, most of Asia don't want to deal touch things close to US regulators. Eg. it's why Tether is so much bigger than things like USDC (as they actively fight against US regulators in court to protect users).

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