The New York Attorney General (NYAG) has announced a settlement with CoinEx, a cryptocurrency trading platform that was sued earlier this year for failing to register as required. As announced by Attorney General Letitia James, the settlement will require the Hong-Kong based virtual currency platform to pay a fine and register with the New York Department of Financial Services (NYDFS).
The lawsuit against CoinEx alleged that the platform had been operating in New York without proper registration or authorization. The state’s Martin Act requires all cryptocurrency exchanges to register with the NYDFS in order to operate legally. The lawsuit sought to halt CoinEx’s operations in the state and impose penalties for its failure to comply with the law.
However, under the terms of the settlement, CoinEx will refund thousands of New York investors over $1.1 million and pay a fine of over $600,000 in penalties to the state. Unfortunately, the platform has been banned from making its platform available in New York moving forward.
In the same vein, the platform will no longer be allowed to offer securities and commodities in New York. Additionally, the settlement requires CoinEx to submit quarterly reports to the NYDFS detailing its compliance with the terms of the agreement.
New York Agency Work on Crypto Regulations
Meanwhile, the settlement with CoinEx is the latest example of the New York Department of Financial Services’ efforts to regulate the cryptocurrency industry in New York. The agency has been working to establish clear guidelines for cryptocurrency companies operating in the state and has issued several BitLicenses to companies that have met its regulatory requirements.
Also, the agency has consistently offered instructions for the regulation of the crypto ecosystem to ensure consumer safety. It introduced a policy to charge crypto companies for providing regulations in order to recruit excellent personnel for its digital currency regulatory team.
James in a letter to US Congress has called for legislation that would make it illegal to support the acquisition of digital assets like cryptocurrencies with money from IRAs as well as defined contribution plans like the 401(k) and 457 programs in order to protect citizen’s retirement assets
