Back in the years when the cryptocurrency industry was attempting to rise up against other trades, many countries opposed its existence.
Cryptocurrencies were despised by almost every country in the world. The only reason they were despised was because of the decentralized nature and the level of freedom they granted to their carriers.
As time went by, traditional financial institutions and countries started to realize the importance of adopting cryptocurrencies.
This is the reason why the adoption level for cryptocurrencies shot up in the past three years. The adoption level of cryptocurrencies spiked tremendously in the past three years because of the pandemic.
People realized the true potential of cryptocurrencies and how they get help the world make it through difficult economic times.
With this in mind, many countries have opened up their doors to cryptocurrencies and cryptocurrency exchanges. However, with the increased adoption level of cryptocurrencies, several risks have come to life.
The most concerning and alarming situation risk is scams and fraudulent activities taking place in the cryptocurrency industry.
Due to such activities, regulatory authorities from around the world have gotten very strict against the adoption of cryptocurrencies. They have tightened their grip on cryptocurrencies and do not want to loosen it up anytime soon.
The US Regulators are the most Aggressive
Among the regulators from across the globe, it is the US regulatory authorities that have shown the highest level of aggression. This is because they want to ensure that their citizens are safe from crypto scams.
Despite being aggressive and strict, it is the US-based investors that have suffered the highest level of scams and frauds from the crypto industry.
Therefore, the regulators are not showing any leniency to the crypto firms even if there is the slightest possibility of the firm running a scam.
Legal Actions in the US and the US SEC
Over the years, US regulators have gone after several crypto exchanges and crypto projects. Most of the time, the claims against such entities are either offering services without being registered or authorized.
At times, there are allegations that the firms are breaching regulatory guidelines and at times, there are claims of the platforms running scams.
The most prominent regulatory authority in the United States taking action against most of the crypto entities is the US SEC.
It has gone after multiple crypto exchanges, trading platforms, and even crypto projects in the past few years.
It has grown even more aggressive against major crypto entities such as Coinbase, Binance, Ripple, Paxos, and many more in the past couple of years.
This is the reason why it has become a common perception that whenever a crypto firm faces scrutiny or legal action in the US, it is because of the SEC.
CoinEx is facing the Pressure
This time, however, the regulator is not the same it is Letitia James, a New York Attorney General that has gone after a crypto project.
Letitia James has reportedly sued CoinEx, a cryptocurrency exchange operating in the United States. As per the Attorney General, the exchange is offering its services illegally in the state of New York.
The exchange is accused of being involved in illegal, president, and repeated fraudulent activities.
She further claimed that the exchange has failed to register itself as a broker or seller of securities or cryptocurrencies, thus, breaching the Martin Act.
The importance of the same Act is that it is known for fighting official frauds taking place in the financial world.
According to James, the exchange had been approached several times to provide proof of its operational permission in the state.
The exchange responded to neither of the requests and last month, they failed to reply to the summons that was sent for them regarding the same matter.
Now, the exchange, which is based in Hong Kong, is facing legal action in the United States and has to answer for its activities.
