The cryptocurrency exchange OKcoin on Friday suspended trading of the two city-based digital currencies — MiamiCoin and NYCCoin
“Limited liquidity for these coins on our platform has created the possibility of price manipulation and fraudulent activity,” OKCoin wrote in a blog post. “While none of these risks have occurred, we wanted to get ahead of any possible misconduct.”
The Crypto exchange also stated that the suspension is temporary and will resume operations as soon as the potential issues are addressed. Also mentioned that the suspended currency can be traded on decentralised exchange.
Okcoin was founded in 2013. In July 2018, the company expanded into the U.S. market after filing a money service business (MSB) registration with the U.S. Financial Crimes Enforcement Network (FinCEN) in November 2017. Also it is a globally licensed exchange headquartered in San Francisco and the only centralized exchange that offered citycoins, according to the blog post.
Both NYCCoin and MiamiCoin are developed by CityCoins, which gives the citizens a way of generating crypto-based revenue for themselves.
Conclusively, Miami Mayor Francis Suarez, is also an outspoken supporter of cryptocurrencies and Miami coin, Miami has shown more support to CityCoins, taking control of its digital wallet recently.