CoinEx Stop Providing Services To US Customers Due To Strict Legal Regulations

Key Points:

• CoinEx users received an email informing them that the exchange would stop serving US citizens due to regulatory hurdles.
• The action comes after the exchange received a lawsuit from the New York Attorney General over offering unregistered securities.
• The exchange has asked US users to withdraw their assets within 60 days (until April 24).

According to an email received by users, cryptocurrency exchange CoinEx will stop providing services to users in the United States, according to a report from Cryptoslate.

“Due to regulatory requirements, we regret that CoinEx can no longer provide services to US citizens or residents.”

Email stated.

CoinEx had asked US users to withdraw their assets within 60 business days (before April 24) and said it would “phase out the relevant accounts” after that. The exchange will identify US users by IP address.

As previously reported, New York State Attorney General Letitia James sued CoinEx, claiming that it sold goods and securities not registered in New York.

The petition seeks to prevent CoinEx from engaging in unauthorized activity in the state and wants to block New York IP addresses from using the exchange. James also requested “a full account of the CoinEx New York account.”

Recently, regulatory authorities have continuously tightened regulations on cryptocurrency trading providers to build a clear regulatory framework for this activity to avoid similar fraud risks like the collapse of FTX.

The New York Attorney General, known for his aggressiveness in previous legal actions, also prompted Nexo to withdraw from the US market in December because of regulatory concerns, even though there is no regulatory body for any reason that directly compels them to do so.

The exchange’s token is also slightly affected by the above news and recorded a drop of about 1.5% in 24h. Currently, CET is trading at $0.0407.

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