CoinEx secured regulatory approval in Poland after being forced to shut down and paying hefty fines in New York and Québec.
CoinEx has announced it has secured a Virtual Assets Service Provider (VASP) license in Poland as part of its European expansion strategy ahead of the implementation of EU’s MiCA regulation later this year.
The digital asset firm is focused on ensuring regulatory approval in Europe after being forced to shut down its operation in New York in June 2023 and paying a hefty fine of $1.7 million.
CoinEx forced to shut down in New York and Québec
At the time, NY Attorney General Letitia James accused CoinEx of failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.
CoinEx hasn’t changed its ways, it seems. In its official announcement, the company says it is “cementing its reputation as a trustworthy and law-abiding exchange”, although regulatory authorities have already ruled it is not an exchange. Instead, it is a brokerage firm.
In December 2023, CoinEx was also fined $2 million in Canada. Autorité des marchés financiers (AMF) from Québec, Canada, penalized operators of the crypto asset trading platform coinex.com for non-compliance with Québec’s securities and derivatives legislation. CoinEx entities and related parties operated as securities and derivatives dealers without AMF registration. They distributed securities and marketed derivatives without AMF-approved prospectuses or exemptions.
The Financial Markets Administrative Tribunal sanctioned CoinEx Global Limited and related entities, imposing a $2 million penalty. The Tribunal also fined Haipo Yang, CEO of CoinEx, $300,000 for similar violations. The Tribunal ordered the permanent blocking of access to coinex.com, effective two months post-decision.
CoinEX gains access to EU market ahead of MiCA
With a VASP license from Poland, CoinEx is also securing access to other member states through the EU passport. The regulatory approval also comes in good timing ahead of the EU’s upcoming MiCA regulation, which provides further clarity for digital asset businesses.
Haipo Yang, CEO of CoinEx, said: “Obtaining the VASP registration in Poland is a testament to our unwavering dedication to providing a secure and regulated trading environment for our users. We are thrilled to expand our operations in Europe. This achievement reinforces our commitment to driving the global adoption of cryptocurrencies and fostering the growth of the digital asset ecosystem.”
Established in 2017, CoinEx claims to be a global cryptocurrency exchange, although it isn’t recognized as such by New York authorities. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services.
