Lax currency exchanges have been the latest victims of the bitcoin boom, which is now in its second year and has sparked fears that the cryptocurrency is a bubble.
The Laxcoin exchange, for example, said on Tuesday that all of its trading would be limited to 100 BTCs.
The exchange said it would be “all new” and said it could not confirm the validity of its accounts, which it said were being frozen by the Bitcoin exchange provider.
“The exchange has been temporarily shut down for non-compliance with regulatory requirements,” Laxcointe wrote in a statement.
The company’s statement added that it is working with regulators to resolve the issue.
The US Securities and Exchange Commission on Tuesday said that a Bitcoin exchange has violated a federal anti-money laundering law.
The SEC said the exchange, known as LaxCoin, failed to comply with the Foreign Corrupt Practices Act (FCPA) after allegedly transferring more than $5 million from an American company.
LaxCointe said the company has paid $1 million in restitution and is working to refund the customer.
The CFTC said in a court filing that the exchange failed to register as a money transmitter on January 31.
CFTC spokesman Scott Drexler said the agency would not comment on pending litigation.
The SEC said it has “strong confidence” in the company.