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Apcoin Geo Blocks North American Users From Staking

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North American crypto users are not allowed to stake ApeCoin, an ERC-20 metaverse token issued by Yuga Labs, according to a company statement on Wednesday.

ApeCoin DAO claimed that the “current regulations” left it “not a good choice” but selectively geoblocked the service in several regions, including Canada and the United States.

The era bows to regulators

in his latest project update, ApeCoin informed about the upcoming launch of ApeStake.io. The site will go live on September 5, after which the corresponding smart contract will be funded within two days. Strikers can start earning rewards one week after launch on December 12.

However, as described at the bottom of the page, staking ApeCoin may prove more difficult for some users than others depending on their location. Countries and regions including the United States, Canada, Syria, Iran, Cuba, Russia, Crimea, Donetsk and Luhansk will all be geo-blocked.

“We know that geo-blocking some users in North America is inconvenient for many members of the AppCoin community,” said Yuga. “Unfortunately, we didn’t have a good choice in the current regulations.”

“Staking” in crypto often refers to locking down one’s cryptocurrency to secure a particular blockchain network while being rewarded with network fees and subsidies. It can also refer to any service that requires someone to periodically liquidate their digital coins in exchange for a yield.

Such a product puts ApeCoin in the crosshairs of US securities regulators, who have been cracking down on cryptocurrency lenders providing similar services for years. For example, a California watchdog ordered Nexo to stop offering interest-bearing crypto accounts in September, as they are unregistered securities.

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The Securities and Exchange Commission (SEC) feels much the same way: it banned Coinbase from issuing a lending product last year and even proposed more strict regulation of “proof-of-stake” based cryptocurrencies. Van can be similar to effects.

The federal agency launched an investigation into Yuga Labs last month for possible violations of securities laws. It was suspected that some NFTs, as well as AppCoin, may be identical to stocks or other securities.

A possible loophole?

While ApeCoin may block front-end access to its staking site for certain regions, the organization notes 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 smart contracts, or develop clients and interfaces that allow users to interact with smart contracts. Is,” told ApeCoin on Twitter on Wednesday.

ApeCoin said third-party companies have already developed alternative interfaces to interact with the contract, outside of the first party’s site.

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source: cryptopotato.com

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