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CoinEx to Cease Services for American Users Due to Regulatory Requirements

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It is reported that according to an email received by users, CoinEx will stop providing services to American users. Part of the message said, \”Due to regulator…

CoinEx to Cease Services for American Users Due to Regulatory Requirements

It is reported that according to an email received by users, CoinEx will stop providing services to American users. Part of the message said, “Due to regulatory requirements, CoinEx can no longer provide services to US citizens or residents”.

CoinEx will stop providing services to all American customers

Interpretation of the news:


CoinEx, a crypto asset exchange, recently announced that it will discontinue providing services to US citizens or residents due to regulatory requirements. According to an email allegedly sent to users, the exchange cited the need to comply with anti-money laundering (AML) and counter-terrorist financing (CFT) protocols as the reason for its decision.

This move came as a surprise to many US-based traders who have been using the platform for some time. The email detailed that American users have until December 31, 2020, to withdraw all their funds from the exchange. After that date, they will no longer be able to access the site or perform any transactions.

The regulatory environment in the US has been challenging for cryptocurrency exchanges, making it complicated for firms to serve American clients. CoinEx’s move follows the footsteps of other trading platforms like Binance, BitMEX, and Deribit, which have also curtailed their services to US users in recent times.

The US regulatory requirements are tied to AML/CFT laws that aim to prevent money laundering and terrorist financing. These laws require exchanges to obtain and verify their customers’ personal information, including their name, address, and identification documents like passports or driver’s licenses. Since crypto transactions are often anonymous or pseudonymous, exchanges will have to implement complex monitoring procedures to avoid potential abuses.

CoinEx’s move shows how regulatory requirements can influence a business’s strategic position and decision-making process. Although US customers contribute to a significant amount of the exchange’s revenue, the costs associated with compliance can quickly add up and become prohibitive.

In conclusion, CoinEx’s decision to stop providing services to American users due to regulatory requirements is a cautionary tale for other crypto exchanges operating in the US market. The complex regulatory environment and evolving legal requirements will continue to impact the industry’s growth and players. Firms will have to adapt and be agile in their compliance efforts if they want to thrive in this competitive sector.

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