The state of New York, led by Attorney General Letitia James, continues its aggressive stance on crypto regulation with the recent ban of CoinEx, a global crypto exchange.
The exchange, which launched in 2017, has been accused of operating illegally in the state and failing to register as a securities and commodities broker-dealer. As a result, more than $1.7 million has been recovered from CoinEx, with refunds to be issued to affected investors.
New York Attorney General Letitia James has taken decisive action against CoinEx, accusing the exchange of falsely representing itself as a legitimate crypto trading platform.
The ban prohibits CoinEx from offering its services to residents of New York, citing the lack of proper registration and compliance.
In a significant development, the New York Attorney General’s office has announced that approximately $1,172,971 in various cryptocurrencies will be refunded to 4,691 affected investors.
CoinEx has been instructed to implement geo-blocking measures to prevent New York IP addresses from accessing its platform and to cease creating new customer accounts in the United States.
The New York Attorney General emphasized the risks posed by unregistered cryptocurrency platforms to investors, consumers, and the overall economy.
This latest action serves as a warning to other crypto companies operating outside the bounds of New York’s laws. The state is committed to protecting its residents and will continue to pursue legal action against those who disregard financial regulations.
The case against CoinEx is part of a broader crackdown on unregistered securities within the cryptocurrency industry. Notably, the state of New York has already labeled Ethereum (ETH) as a security.
Recently, the Attorney General’s office proposed additional regulations to safeguard investors in the cryptocurrency industry.
New York has recovered over $500 million from non-compliant crypto entities, underscoring the state’s commitment to enforcing financial regulations and protecting its citizens.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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