Users in North America are prevented from staking ApeCoin due to geo-blocking
Shortly after an SEC investigation into Yuga, ApeCoin is geo-blocking North American token holders’ access to its staking service.
Users in North America will not be able to stake ApeCoin, the ERC-20 metaverse token released by Yuga Labs, the business said on Wednesday.
The ApeCoin DAO said that the “current legal landscape” left them with “no viable choice” except to geo-block the service selectively in various regions, including Canada and the United States.
In its most recent project update, ApeCoin outlined ApeStake.io’s impending debut. After the website goes online on September 5, the corresponding smart contract will be paid within two days. One week after launch, on December 12th, takers may begin earning prizes.
As described at the bottom of the article, staking ApeCoin may be much more challenging for certain users than for others, depending on their location. The United States, Canada, Syria, Iran, Cuba, Russia, Crimea, Donetsk, and Lugansk will be geoblocked from staking.
“We are conscious that geoblocking certain North American users is inconvenient for many Apecoin community members,” stated Yuga. “Unfortunately, given the current regulatory climate, we had no viable choice.”
“Staking” in bitcoin often refers to locking up one’s cryptocurrency to secure a certain blockchain network, in exchange for network fees and subsidies. It may also refer to any service that requires the storage of digital currency in exchange for a periodic dividend.
Such a program puts ApeCoin in the sights of U.S. securities authorities, who have been cracking down on crypto lenders offering such services all year. In September, for instance, a California regulator ordered Nexo to cease issuing interest-bearing crypto accounts, finding them unregistered securities.
The Securities and Exchange Commission (SEC) shares similar sentiments: it prevented Coinbase from releasing a loan product last year and has even stated that “proof of stake”-based cryptocurrencies may resemble securities more closely.
Last month, the federal government started examining Yuga Labs for possible violations of securities laws. It was believed that certain NFTs, like Apecoin, may mimic stocks or other assets.