ApeCoin Blocks North American Token Holders After SEC Probe Into Yuga
Shortly after an SEC probe into Yuga, ApeCoin is no longer allowing North American token holders to use its staking service.
This is yet another example of how crypto users in North America are being left out in the cold when it comes to participating in new and innovative projects. ApeCoin is just the latest example – it's a shame that users in this region will be missing out on what could be a great opportunity.
The ApeCoin DAO has claimed that the “current regulatory environment” has left it with “no good alternative” but to selectively geo-block the service in numerous areas, including Canada and the United States. This is a disappointing development for those of us who have been supporting the ApeCoin project, as the geo-blocking will make it difficult or impossible for many people to access the service.
In an industry first, YugaByte has announced that it will begin complying with regulations set forth by the Securities and Exchange Commission (SEC).
ApeCoin's upcoming launch of ApeStake.io is sure to be a success! The site goes live on September 5th, after which the associated smart contract will be funded within two days. Stakers may begin accruing rewards one week after launch on December 12th. ApeCoin is committed to providing a safe and secure platform for its users, and the launch of ApeStake.io is a testament to that commitment. We can't wait to see what the future holds for ApeCoin and its community!
It's a shame that staking ApeCoin will be more difficult for some users than others, depending on their location. Countries and regions such as the United States, Canada, Syria, Iran, Cuba, Russia, Crimea, Donetsk, and Luhansk will all be geo-blocked from staking.
“We are aware that geoblocking some users in North America is inconvenient for many members of the Apecoin community,” said Yuga. “Unfortunately, in today’s regulatory environment, we had no good alternative.”
As crypto adoption continues to grow, staking will become an increasingly popular way to earn rewards from digital currency holdings. By locking up coins to secure a blockchain network, users can earn fees and subsidies from the network, providing a passive income stream. With staking, users can earn rewards without having to sell their coins, providing a way to HODL and still earn a return on their investment.
ApeCoin's new lending service has caught the attention of US securities regulators. Throughout the year, regulators have been cracking down on similar services offered by other crypto lenders. For example, a California watchdog ordered Nexo to stop offering interest-bearing crypto accounts in September. ApeCoin's service may be deemed an unregistered security, which could lead to serious consequences for the company.
The SEC's stance on cryptocurrencies has been clear: they are not to be treated as securities. This has led to Coinbase being unable to issue a lending product, and has even suggested that "proof of stake" based cryptocurrencies could be more closely resemble securities.
The US Securities and Exchange Commission (SEC) has launched an investigation into cryptocurrency startup Yuga Labs over suspicions that its non-fungible tokens (NFTs) and Apecoin token may violate securities laws. The SEC's investigation is focused on whether Yuga Labs' NFTs and Apecoin token are "securities" as defined by federal law.
A Potential Loophole in the System?
It's great to see that ApeCoin is taking measures to prevent front-end access to its staking site in certain regions. However, it's important to note that smart contracts are technically accessible by anyone. This means that users in restricted regions may still be able to access and use the ApeCoin platform.
“We want to remind the community that one of the benefits of decentralized finance is that anybody can interact with a smart contract, or develop clients and interfaces that allow users to interact with smart contracts,” said ApeCoin over Twitter on Wednesday.
ApeCoin's announcement that third-party companies have already developed alternative interfaces for interacting with the contract is a positive development. This shows that there is interest in the project and that it has potential for growth.
The post ApeCoin Geo-Blocks North American Users From Staking is a disappointing development for those of us who were hoping to use the ApeCoin platform. It is clear that the team behind ApeCoin does not believe that North American users are a valuable part of their user base.
