The US Securities and Exchange Commission has ordered bitcoin exchange Gemini to halt the trading of shares and options traded on the exchange.
Gemini announced on Monday that it will suspend trading in its stock, options and futures and will issue a statement explaining why.
Gemini will also close all trading accounts.
Gemini said in a statement that the order would affect its trading volume and that it was evaluating its options.
Gemini said the order will be effective as of October 5.
The move by the SEC follows an investigation by the New York Department of Financial Services (DFS) that found that Gemini was failing to maintain the records required by the securities laws to ensure the privacy of its customers and to provide them with fair and accurate trading data.
In March, the regulator said that the exchange had failed to meet several key safeguards for its customers, including requiring its customers to register with the SEC, and required it to notify customers if their account balance changed and to notify them when a trade was cancelled.
The regulator also said the exchange failed to maintain sufficient record-keeping.
According to a filing by the regulator, Gemini failed to take steps to ensure that its users and customers knew that the exchanges’ privacy practices were consistent with the law.
“Given that Gemini did not conduct adequate privacy monitoring, it appears that it is not likely that its customer base would have a reasonable expectation that its privacy practices would not conflict with the laws,” the regulator wrote in a separate filing on Monday.
The regulator’s order comes in the wake of an investigation launched in December into whether Gemini was providing customers with false or misleading information about its trading operations.
After the DFS launched its investigation, Gemini filed a lawsuit in the US District Court for the Southern District of New York.
That lawsuit was later withdrawn, but the regulator’s action is not yet over.
Founded in 2015, Gemini is one of the largest bitcoin exchanges in the world.
Its trading volume is estimated to be around $8 billion.
Shares in the company trade on Gemini’s platform.