CoinEx, a cryptocurrency trading platform, has notified its users that it will no longer be able to offer its services to individuals who are either citizens or residents of the United States, as the new regulations put forth by local regulatory bodies make it impossible to continue.
Users based in the United States have been requested to withdraw their assets by April 24th, within a 60-day period. Accounts of users who do not withdraw their assets within this timeframe will be closed gradually.
The platform has stated that it will identify US-based users using their IP addresses. Following the announcement, CoinGecko data shows that the native token of the CET exchange fell by 7% in value within two days. However, in the last 24 hours, the price has increased by 3%.
In February, the New York Attorney General’s Office sued CoinEx, alleging that the platform was operating as an illegal broker-dealer, thereby violating the Martin Act, which is regarded as one of the most rigorous US anti-fraud and securities laws.
In 2022, the South Korean Financial Services Commission (FSC) became suspicious of CoinEX’s compliance with local regulatory requirements.
CoinEx, which recently celebrated its fifth anniversary, currently offers services that cover nearly 700 top cryptocurrencies and over 1000 trading markets. Initially, the CoinEx platform was only accessible in English and Chinese, but it now provides localized products for users in fifteen different language regions. CoinEx has over three million users in over 200 countries and territories.