The regulatory storm continues in the United States, and this time it is KuCoin that is being sued in New York State, for selling unregistered securities.
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KuCoin faces lawsuit from New York Attorney General
The regulatory crusade continues in the United States and this time it is KuCoin who is paying the price in New York State. Indeed, Attorney General Letitia James considers that the cryptocurrency platform proceeded with sales of unregistered securitiesaimed at the citizens of the State.
Thus, Letitia James calls for a blocking of access to the exchange’s website for New Yorkers, and commented on the case with the usual characteristic arguments that anti-crypto regulators can make:
“My office is taking action one by one against cryptocurrency companies that brazenly ignore our laws and put investors at risk. Today’s action is the latest in our efforts to rein in obscure cryptocurrency companies and bring order to the industry. […] KuCoin operated in New York without registration and that is why we are taking strong action to hold them accountable and protect investors. »
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Growing regulatory uncertainty in the United States
Although this lawsuit is now materializing in a period of legal uncertainty in the United States, it seems to have been prepared for several months already. Indeed, this is reflected in one of the passages of the press release, unless it testifies to a lack of information on the part of the Attorney General’s office, considering the fact that the UST has been falling for almost a year now :
“On its platform, KuCoin investors can buy and sell popular virtual currencies including ETH, LUNA, and TerraUSD (UST) […]. »
On the other hand, that office also states that it was able access KuCoin Earn productrequiring the same registration obligations.
Among the measures, Letitia James therefore requests blocking based on the IP address and GPS location. She also points out the fact that the platform did not comply with an order asking him for details about his digital asset trading activities.
In addition, New York law requires registration with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to carry out all the activities with which KuCoin is accused.
KuCoin is just the latest example of lawsuits against cryptocurrency platforms in the United States. Given the current regulatory climate across the Atlantic, it is very likely that similar cases will emerge in the coming weeks. These are all actions that could penalize American competitiveness in this industry, to the benefit of other regions of the world.
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Source: Letitia James
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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