North American crypto users will be blocked from tucking ApeCoin, the ERC-20 metaverse token issued by Yuga Labs, according to a company statement Wednesday.
The ApeCoin DAO claimed the “current regulatory environment” has left it with “no good alternative” other than to selectively geographically block the service in numerous territories, including Canada and the United States.
Yuga bows to the regulators
In his latest project update, ApeCoin offered details on the upcoming launch of ApeStake.io. The site goes live on September 5, after which the associated smart contract will be funded within two days. Stakers can start earning rewards one week after launch on December 12th.
However, as detailed at the bottom of the page, depending on your location, staking ApeCoin can prove far more difficult for some users than others. Countries and regions including the United States, Canada, Syria, Iran, Cuba, Russia, Crimea, Donetsk, and Luhansk are all geo-blocked from staking.
“We recognize that geo-blocking some users in North America is inconvenient for many members of the Apecoin community,” Yuga said. “Unfortunately, in today’s regulatory environment, we didn’t have a good alternative.”
“Staking” in crypto often refers to locking one’s own cryptocurrencyto a specific Blockchain-Secure network while being rewarded with network fees and subsidies. It can also refer to any service that requires someone to lock their digital coins in exchange for a regular income.
Such a product puts ApeCoin in the crosshairs of U.S. securities regulators, which have been cracking down on crypto lenders offering similar services throughout the year. For example a California guard dog ordered Nexo will stop offering interest-bearing crypto accounts in September, considering them unregistered securities.
The Securities and Exchange Commission (SEC) takes a similar view: It blocked Coinbase from issuing a credit product for the past year, and in fact did so recommended that “Proof of Stake“-based cryptocurrencies could be more like securities.
The federal agency began investigate Yuga Labs for potentially violating securities laws last month. It has been suggested that certain NFTs and Apecoin could resemble shares or other securities.
A potential loophole?
While ApeCoin can prevent front-end access to its staking site for certain regions, the organization noted that smart contracts are technically accessible to anyone.
“We want to remind the community that one of the benefits of decentralized finance is that anyone can interact with a smart contract or develop clients and interfaces that allow users to interact with smart contracts.” said ApeCoin via Twitter on Wednesday.
ApeCoin added that third-party companies have already developed alternative interfaces for interacting with the contract, beyond the first party.
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Source: Crypto News Deutsch