A settlement between CoinEx, a cryptocurrency corporation, and New York Attorney General Letitia James mandates that the company repay more than $1.7 million to thousands of New York investors and pay fines to the state. The agreement also forbids CoinEx from doing business inside the state. According to James, the arrangement serves as a reminder to other cryptocurrency businesses about the repercussions of disobeying New York’s laws. In February, a complaint was brought against CoinEx, alleging that the company had misrepresented itself as a cryptocurrency exchange while also failing to register with the authorities.
AMP, LUNA, LBC, and $RLY are examples of cryptocurrencies that Attorney General James said in the same case should be classed as securities and commodities. The legal action against CoinEx was greatly influenced by this categorisation. In an effort to create the most complete set of cryptocurrency rules in the country, James submitted legislation last month that requires refunds for users and audits of cryptocurrency exchanges.
The BitLicense, a business license that permits controlled virtual currency operations, is an example of New York’s strict cryptocurrency restrictions. New York has long been renowned for having strict cryptocurrency rules. The state has taken legal action against additional cryptocurrency businesses in addition to the prosecution against CoinEx. The New York Attorney General sued KuCoin in March, claiming the exchange had neglected to register with the state. It is noteworthy that James classified Ether as a security in the KuCoin case, making James the first regulatory authority in the US to do so. The former CEO of Celsius, Alex Mashinsky, was accused of deceiving investors in another noteworthy enforcement, which resulted in the business declaring bankruptcy in July. Additionally, James’ agency recently mandated that the cryptocurrency trading site Coin Cafe pay back $4.3 million in hidden fees to consumers.
The agreement reached between CoinEx and the New York Attorney General shows how committed the state is to upholding cryptocurrency laws and safeguarding investors. The deal sends a strong message to cryptocurrency firms that non-compliance would have serious repercussions by refunding New York investors and enforcing fines. Letitia James’ proposed legislation and the strict regulatory environment in New York seek to create comprehensive controls for cryptocurrencies, bolstering the state’s status as a pioneer in regulatory monitoring.
