- New York Attorney General Letitia James filed the lawsuit.
- The allegations stem from CoinEx’s failure to get proper state registration.
Since the U.S. Securities and Exchange Commission’s (SEC) assault on crypto businesses, scrutiny of crypto players in the U.S. continues. In the latest development, an attorney from New York has filed a complaint with regulators over a cryptocurrency exchange.
Global regulatory agencies stepped up their attempts to standardize crypto market norms after the FTX crash in November 2022. Notwithstanding this crackdown, US officials have been accused of not providing any clarification on the legislation surrounding cryptocurrency. Despite widespread calls for this very thing.
Regulation by Enforcement
As reported by Reuters, New York Attorney General Letitia James filed the lawsuit. This is against cryptocurrency exchange CoinEx for allegedly breaking state law. Moreover, the attorney argued that the exchange was breaking the Martin Act, a New York anti-fraud legislation that gives the Attorney General the authority to take action against fraudulent participants. According to the report, the allegations stem from CoinEx’s failure to get proper state registration.
Furthermore, on Wednesday, a case alleging a breach of the Martin Act was filed in a New York state court in Manhattan. CoinEx, which launched in December 2017, has a 30-day transaction volume of $13.66 billion.
In a February 23, 2023 ruling, a New York regulatory agency deemed Binance USD (BUSD) to be unregistered security and demanded that Paxos cease production of the stablecoin.
On the other hand, the U.S. Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, have been targeted by the Chamber of Digital Commerce for their “regulation by enforcement” strategy, which poses a danger to the U.S. digital assets market and investors.
The Chamber of Digital Commerce submitted an amicus brief in SEC v. Wahi to prevent the SEC’s crypto crackdown in the U.S., alleging that the case wrongly classified various crypto assets as securities.
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