CoinEx, a Hong Kong-based cryptocurrency exchange, has agreed to pay over $600,000 in penalties and refund $1.17 million to its 4,691 New York investors in cryptocurrencies over the next 90 days. This decision was made in compliance with the New York Attorney General Letitia James’ regulations. The Attorney General stated that this agreement would warn crypto companies that there are hefty consequences for ignoring New York’s laws.
Banned from Offering, Selling, or Purchasing Securities and Commodities in New York
In addition to the penalties and refund, CoinEx has been banned from offering, selling, or purchasing securities and commodities in New York. The exchange is also prohibited from making its platform available in the state. To ensure the implementation of the ban, CoinEx must implement geoblocking to prevent New York IP addresses from accessing their platform. CoinEx is also prohibited from creating any new accounts for U.S. customers, and existing U.S. customers can only withdraw their crypto from the platform.
Strict Regulations over the Crypto Industry
New York Attorney General Letitia James has maintained strict regulations over the crypto industry. Under her leadership, several lawsuits have been filed against crypto firms, including CoinEx and KuCoin. According to the press statement, her office had recovered over $500 million from the cryptocurrency industry.
Withdrawal from the U.S. Market in February
Before this agreement, CoinEx had withdrawn entirely from the U.S. market in February. The exchange attributed its decision to the unfavorable regulatory environment at the time. The court filing stated that CoinEx does not admit or deny that any crypto asset is a security or commodity.
CoinEx has agreed to pay penalties and refund its New York investors to comply with the regulations set by the New York Attorney General Letitia James. The exchange has also been banned from offering, selling, or purchasing securities and commodities in New York and prohibited from making its platform available in the state. CoinEx must implement geoblocking to prevent New York IP addresses from accessing their platform and is prohibited from creating any new accounts for U.S. customers. Existing U.S. customers can only withdraw their crypto from the platform.