Is CoinEx Legal in the USA?

Reminder: Always Do Your Own Research (DYOR) before using any cryptocurrency platform. Regulations vary by country and state, and it’s important to understand the risks and legal obligations before investing.

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What is CoinEx?

CoinEx is a global cryptocurrency exchange founded in 2017 and headquartered in Hong Kong. It offers a wide range of services, including spot trading, futures trading, crypto asset management, and more. Known for its user-friendly interface and wide selection of cryptocurrencies, CoinEx has attracted users from around the world, particularly those looking for lesser-known altcoins and a streamlined trading experience.

CoinEx also launched its blockchain ecosystem, CoinEx Smart Chain (CSC), and native token, CET (CoinEx Token), aiming to support decentralized applications and build a broader crypto infrastructure.

Is CoinEx Legal in the USA?

As of now, CoinEx is not legally authorized to operate in the United States. U.S. residents are prohibited from accessing CoinEx’s services due to regulatory issues. While the platform remains available in many other countries, it does not hold a license from any U.S. regulatory authority such as the SEC (Securities and Exchange Commission) or FinCEN (Financial Crimes Enforcement Network).

CoinEx explicitly states in its terms of service that it restricts access to users in jurisdictions where its operations are considered illegal, and that includes the United States.

Regulatory Actions and Compliance

CoinEx came under scrutiny from U.S. regulators in early 2023. The New York Attorney General (NYAG) sued CoinEx, accusing the platform of operating as an unregistered securities and commodities broker-dealer in New York. The lawsuit claimed that CoinEx listed tokens that were considered securities under U.S. law and failed to register appropriately.

In response, CoinEx agreed to a settlement with the NYAG in June 2023, which required the platform to:

• Pay over $1.7 million in penalties and restitution
• Cease all operations in the state of New York
• Restrict access to users from New York and other U.S. jurisdictions

Since then, CoinEx has taken measures to block U.S.-based IP addresses and has removed its services from the U.S. market to comply with regulatory demands.

Impact on U.S. Users

For users based in the United States, this means CoinEx is no longer a viable platform. New account registrations from U.S. IP addresses are blocked, and existing U.S. users have been required to close their accounts or face restrictions, including the inability to deposit or trade assets.

Additionally, CoinEx’s terms of service now prohibit usage by any U.S. persons, and attempting to access the site from the U.S. may result in account suspension. If you’re a U.S. resident and previously used CoinEx, it’s crucial to withdraw any remaining funds and ensure compliance with local laws.

Alternatives for U.S. Residents

While CoinEx is off-limits, several regulated cryptocurrency exchanges operate legally in the U.S., including:

• Coinbase – A publicly traded U.S. exchange, known for strong regulatory compliance and beginner-friendly design.
• Kraken – Offers advanced trading features while remaining compliant with U.S. laws.
• Gemini – A New York-based exchange focused on security and regulation.
• Crypto.com – While not U.S.-based, it offers a compliant app for U.S. residents in certain states.
• Binance.US – A separate legal entity from Binance Global, tailored specifically for U.S. users with limited token availability.

Always check whether a platform is registered in your state and complies with local regulations.

The case of CoinEx serves as an important reminder of how quickly the crypto regulatory landscape can change, especially in the United States. For U.S. users, using platforms that follow local laws is essential for security and peace of mind.