A centralized cryptocurrency exchange and brokerage Coinzoom halted its services in Ohio post regulatory summon.
The suspension stemmed from a recent multi-state examination, where regulators found it difficult to verify exchange’s financial condition.
Ethereum slips to $2,988 as it lost 5.11% of its trading price intraday.
Coinzoom, a cryptocurrency and brokerage firm suspended its operations in Ohio following a regulatory summons. While some nations have established rules and regulations to govern cryptocurrencies, others continue to oppose the digital currency era.
Despite the global cryptocurrency market’s rapid growth, regulatory challenges remain a significant barrier to its expansion.
Coinzoom Suspends Services in Ohio, Why?
The Ohio Department of Commerce issued a cease and desist order against Coinzoom on August 1st, after a legal review uncovered financial irregularities.
While existing customers can still access their assets, the exchange cannot onboard new customers. Coinzoom plans to challenge the order in an administrative hearing to resolve issues raised by the multi-state examination.
The Ohio Department of Commerce’s Division of Financial Institutions (DFI) issued an order directing the digital currency trading platform, to cease operations in the state, effective immediately.
As a licensed financial firm in Ohio, Coinzoom offers a range of financial services and supports transactions in over 30 cryptocurrencies.
The suspension of operations stemmed from a recent multi-state examination, where regulators found it difficult to verify Coinzoom’s financial situation and extensive financial health assessment process.
“The DFI investigation found that Coinzoom’s financial statements failed to meet the required standards, making it impossible to determine the company’s true financial condition. Consequently, the DFI was unable to ensure Coinzoom’s financial stability, leading to the suspension.”
Coinzoom’s suspended services can resume if the court or DFI lifts the suspension.
Market Updates
The global cryptocurrency market has been reflecting a major bearishness bias, for the past 24 hours. The total market capitalization has slipped by 4% to $2.2 Trillion, and Bitcoin lost more than 4.40% of its trading price.
The FOMO of global financial uncertainty is misleading the vast cryptocurrency market resulting in major sell out. Similarly, Ethereum slips to $2,988 as it lost 5.11% of its trading price intraday.
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