CoinEx Halts US Services
Crypto exchange CoinEx has announced that it will no longer be serving US customers due to regulatory requirements. In an email obtained by Crypto Slate on February 24, the company stated that it can no longer provide services to US citizens or residents. The move follows charges against the exchange filed by the New York Attorney General’s office on February 22, which aimed to have the company cease operations only in New York.
CoinEx has asked U.S. users to withdraw their assets within 60 business days (before April 24) and said that it will “gradually ban the relevant accounts” after that time. Cryptoslate reported. https://t.co/aDVCAtFHkz https://t.co/umVGb9R9DH
— Wu Blockchain (@WuBlockchain) February 26, 2023
US Services halted Pre-emptively
CoinEx identified US users by their IP addresses and has given them 60 business days to withdraw their assets before April 24. After this time, the exchange said it will gradually ban relevant accounts. Nexo, another cryptocurrency exchange, withdrew from the US market in December 2022 due to regulatory concerns, despite not facing direct pressure from regulators.
CoinEx’s decision to halt its services in the US market may have been a preemptive move to avoid potential regulatory action by federal agencies. While it is unclear whether the exchange faces additional regulation from federal agencies, its decision to stop serving US users has already had an impact on its trading volumes. The exchange’s trading volume dropped 6.2% over 24 hours, down from $35 million to $29 million. However, CoinEx’s CET token was minimally affected and is down 3.8% over 24 hours, performing only slightly worse than Bitcoin, which is down 2.8% today.
Tough US stance on Crypto
It remains to be seen whether other cryptocurrency exchanges will follow CoinEx and Nexo in withdrawing from the US market due to regulatory concerns. While the US has been taking an increasingly tough stance on cryptocurrency regulation, it remains a crucial market for cryptocurrency exchanges due to its high demand for digital assets. The decision by CoinEx may be seen as a signal that regulatory scrutiny is increasing, and other exchanges may face similar pressures to withdraw from the US market.