The CoinEx exchange platform forced to close in the United States One more sign of the particularly hostile regulatory environment across the Atlantic. The exchange platform CoinEx has been ordered to stop offering services in the United States, it will also have to pay a fine of 1.7 million dollars. What do we blame him for? CoinEx closes in the United States […]
CoinEx exchange forced to close in the United States
One more sign of the particularly hostile regulatory environment across the Atlantic. The exchange platform CoinEx has been ordered to stop offering services in the United States, it will also have to pay a fine of 1.7 million dollars. What do we blame him for?
CoinEx closes in the United States
New York Attorney General Laetitia James announced charges last February. It was the usual accusation that was retained: the prosecutor believed that CoinEx offered sales of “securities”, or transferable securities, without registering first. The complaint therefore claimed that CoinEx was misrepresenting itself as a cryptocurrency exchange.
And the New York State Supreme Court ruled she was right. The platform is ordered to cease providing services to customers located in New York State. Additionally, it is no longer possible for other US users to create accounts, and existing US accounts can only be used for withdrawals.
The platform is therefore de facto prohibited in the United States.. This is notable because the complaint originated strictly in New York State. The Attorney General also confirmed her hostility to the sector in the press release:
“Today’s deal should serve as a wake-up call for crypto businesses […]. We will continue to prosecute crypto companies that brazenly ignore the law, mislead their investors, and put New Yorkers at risk.»
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A $1.7 million fine for CoinEx
This positioning is evident in the title of the press release: “Attorney General James recovers $1.7 million from a cryptocurrency platform who was operating illegally“. Users located in New York can thus recover the equivalent of their investments in cryptocurrencies. And CoinEx must pay a fine of $600,000.
New York is renowned for its very strict regulatory framework, and the latest initiatives of the Attorney General are a further sign of this. Laetitia James has already sued other platforms like KuCoin, Nexo or Celsius.
These cases show that the United States are definitely no longer a haven for cryptocurrencies. More and more crypto businesses are choosing to stop offering their services there, preemptively, or when forced to. We are therefore witnessing the beginning of a great redistribution.
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Source: New York Attorney General, press release
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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