Hong Kong-based cryptocurrency exchange CoinEx agreed to pay more than $600,000 in penalties and refund $1.17 million to investors in New York, according to a June 15 report. statement.
CoinEx plans to refund 4,691 cryptocurrency investors in New York over the next 90 days.
Additionally, the exchange is prohibited from offering, selling or buying securities or commodities in the state of New York, and is prohibited from making its platform available in the state.
“CoinEx must implement geo-blocking to prevent New York IP addresses from accessing the platform. CoinEx is also prohibited from creating new accounts for US customers and existing US customers We can only withdraw virtual currency from the platform.”
New York State Attorney General Letitia James said the agreement “warns cryptocurrency companies that ignoring New York state law has serious consequences.” she added:
“Unregistered crypto platforms pose risks to investors, consumers and the broader economy.”
Under Attorney General James, New York maintains strict regulation of the cryptocurrency industry and has filed lawsuits against several cryptocurrency companies, including CoinEx and KuCoin. A press release said her firm had recovered more than $500 million from the cryptocurrency industry.
On the other hand, the court filing CoinEx said it neither acknowledges nor denies that any crypto assets are securities or commodities.
Prior to this agreement, CoinEx had completely exited the U.S. market in February. The exchange attributed its decision to the unfavorable regulatory environment at the time.
The post that CoinEx agrees to pay New York over $600,000 in fines first appeared on CryptoSlate.
