The Ohio Department of Commerce has ordered crypto exchange Coinzoom to cease operations in the state effective Aug. 1 following a regulatory examination. Current customers can still withdraw their assets, but the exchange cannot accept new business. The suspension follows a multi-state examination revealing financial discrepancies. Coinzoom is seeking an administrative hearing to address the order.

Ohio Takes Action Against Coinzoom Crypto Exchange

The Ohio Department of Commerce Division of Financial Institutions (DFI) announced on Thursday that it has ordered Coinzoom Inc., a cryptocurrency exchange, to immediately cease operations in the state. Coinzoom, licensed as a money transmitter in Ohio, offers a variety of financial products and supports over 30 cryptocurrencies.

This directive, effective Aug. 1 prevents Coinzoom from accepting new business or assets from Ohio residents. However, current Ohio customers can still withdraw their fiat currency or cryptocurrency assets. This suspension follows a multi-state bank examination where Ohio regulators couldn’t verify Coinzoom’s financial status due to incomplete or inaccurate financial records. According to the announcement:

The Division concluded that the company’s financial records were insufficient to meet the certification requirements for licensees, making it impossible for DFI to ascertain the company’s financial health.

DFI Superintendent Kevin Allard emphasized the necessity of the action, stating, “These examinations are critically important for ensuring the financial safety of Ohioans.” The examiners noted significant gaps and inaccuracies in Coinzoom’s financial documents, and the company’s representatives were unable to provide satisfactory answers during meetings. The suspension will remain until the order is modified or lifted by the DFI or a court, with Coinzoom having requested an administrative hearing.

What do you think about the Ohio Department of Commerce’s decision to suspend Coinzoom’s operations? Let us know in the comments section below.