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2 nding platforms have been instructed to close – Bitcoin News Regulation


New York Attorney General Letia James has ordered the closure of two cryptocurrency transaction platforms and asked three more platforms to immediately answer questions about their activities. Letters to companies published on the Attorney General’s website indicate that the two platforms are Nexo and Celsius Network.

Crack down on New York unregistered cryptocurrency platforms

New York Attorney General (NYAG) Letitia James on Monday announced her new efforts to crack down on unregistered cryptocurrency companies.

In New York, nding platforms must register with the Attorney General’s Office (OAG) to operate in the state or deliver products to its residents. Details of the announcement:

Today, Attorney General James instructed these two nding providers to immediately stop their unregistered and illegal activities in New York, and instructed the other three platforms to provide immediate information about their activities and products.

The notification explains that cryptocurrency platforms are “primarily interest-bearing accounts that offer investors a rate of interest on the virtual currency they deposit.” Under Martin’s law, “the nature and functionality of the products or services that provide the most common virtual currency shows that they fall into any one of the various categories of ‘security’.”

The US Securities and Exchange Commission also treats the products as securities. SEC Chairman Gary Gensler recently told the cryptocurrency exchange Coinbase that its products are securities.

The NYAG website has published break and stop letters to two nding payment platforms. When the letters were rescheduled, the file names indicated that they had been sent to the Nexo and Celsius networks. The three organizations, which did not want to be named, received a letter asking for information about their activities.

After breaking the news, Nexo tweeted: “Nexo is not offering its earnings products and exchanges in New York, so there is no point in getting C&D for the way we are not offering in NY. But we will be associated with the NY AG because it is a clear case of bringing together the recipients of the letter. We use IP based geoblocking.

Attorney General James emphasizes:

Cryptocurrency platforms have to abide by the law like everyone else, which is why we are now ordering the closure of two crypto companies and forcing three more to answer questions immediately.

Last month, Attorney General James shut down the cryptocurrency trading platform Coinseed after suing the company earlier this year. In February, he announced a deal with Bitfinex, Teether and related companies that would end their commercial operations in New York State and impose a 18.5 million fine on the companies.

What does New York Attorney General Letia James think about taking action against unregistered cryptocurrency platforms? Let us know in the comments section below.

Tags in this story

Celsius Network, Crypto Lending Platform, Cryptocurrency Lending, Laetitia James, Laetitia James Bitcoin, Laetitia James Celsius Network, Laetitia James Crypto, Laetitia James Nyorto, Leto

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