• New York attorney general Leticia James is suing Ku Coin Exchange for failing to register as a security and commodities broker-dealer.
• The state of New York has been notoriously anti-crypto, with the introduction of the BitLicense in 2015 and more recently, their crypto moratorium.
• James believes that her lawsuit against Ku Coin is necessary to bring order to the industry and protect investors from any potential harm.
New York Attorney General Sues KuCoin Exchange
The New York Attorney General Leticia James is taking action against another digital currency company, this time filing a lawsuit against KuCoin Exchange for allegedly misrepresenting itself as a crypto exchange without properly registering as a security or commodities broker-dealer.
New York’s Anti-Crypto Stance
New York has long held an anti-crypto stance, which began in 2015 when they introduced the BitLicense, imposing hefty fees and documentation requirements on digital currency businesses. This made it difficult for up-and-coming digital currency enterprises to do business in New York due to the high cost of applying for such licenses. More recently, they imposed a two year cryptocurrency mining moratorium which requires all miners operating within the Empire State borders to use clean energy sources only.
Protecting Investors From Potential Harm
James believes that her suit against KuCoin is necessary to bring order to the industry and protect investors from any potential harm caused by unregulated exchanges. In her statement she said: “One by one, my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk.“
KuCoin Responds To The Lawsuit
KuCoin has yet to issue an official response regarding the lawsuit but according to reports they have recently hired a law firm in New York City in preparation for any legal proceedings that may take place as a result of this case.
It remains unclear how this story will unfold but it’s clear that New York Attorney General Leticia James is determined to crack down on crypto companies who aren’t following state regulations and protect citizens from any potential harm caused by unregulated exchanges.