New York Attorney General Sues CoinEx for Operating without License

02/23/2023 22:57 • Digital Disruptors • 119 views

It is reported that Letitia James, the Attorney General of New York, is suing CoinEx, the cryptocurrency exchange, saying that it is not registered in the state.

The Attorney General of New York sued CoinEx on the registration issue

Analysis based on this information:

The Attorney General of New York, Letitia James, has filed a lawsuit against CoinEx, a cryptocurrency exchange, alleging that the company operates in the state without being registered. The lawsuit states that CoinEx has been accepting trades from New York residents since it started operating in 2018 but has never obtained a license to do so.

James argues that CoinEx has violated state law by failing to obtain a BitLicense, a regulatory license issued by the New York State Department of Financial Services (NYDFS) that allows a company to operate a cryptocurrency business within the state. The lawsuit further alleges that CoinEx has made false and misleading public statements about its licensing status.

The lawsuit follows similar actions taken by the NYDFS against other cryptocurrency exchanges that have operated in the state without being licensed. The NYDFS has been cracking down on unlicensed cryptocurrency businesses since 2015, when it introduced its BitLicense regulations.

CoinEx, which is based in Hong Kong, has not yet responded to the lawsuit. The company’s website shows that it has halted its services to users from several countries, including the United States.

This lawsuit highlights the importance of licensing and regulatory compliance in the cryptocurrency industry. Cryptocurrency exchanges and other businesses dealing with digital assets have the responsibility to comply with applicable laws and regulations in the jurisdictions where they operate. Failure to do so can result in severe legal and financial consequences, as seen in the case of CoinEx.

The lawsuit also demonstrates the authorities’ increasing scrutiny of the cryptocurrency industry, which has been characterized by its decentralized and largely unregulated nature. As digital assets continue to gain popularity and attract investors, it is likely that regulators will continue to develop and enforce regulations to protect users and prevent illicit activities.

In conclusion, Letitia James’ lawsuit against CoinEx serves as a reminder to cryptocurrency businesses that regulatory compliance is crucial to their long-term success. Companies that fail to obtain necessary licenses and comply with applicable laws risk facing penalties, legal challenges, and reputational damage.

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New York Attorney General Sues CoinEx for Operating without License

The Attorney General of New York sued CoinEx on the registration issue

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