Welcome to Barmy’s Daily Crypto News – July 25th, 2022
1. Argentinian Crypto Users Restricted From Purchasing Dollars
A new set of regulations from the Argentine Central Bank have an impact on individuals and businesses who have invested in cryptocurrencies as a hedge against currency depreciation. With the aim of restricting the growth in the exchange rate, the bank will only sell dollars at an official rate to people and businesses that have not purchased cryptocurrency for at least 90 days prior to the operation.
The new restrictions, according to local sources, are intended to close a loophole that some organizations use to their advantage by taking advantage of the exchange control channels to buy cheap dollars at the official rate and then using these to buy cryptocurrencies to exchange them at a higher rate.
Most Argentinians’ responses were negative, and a few even questioned the wisdom of such a move.
2. SEC Being Criticized For Crypto Regulations
After charging a former Coinbase employee with insider trading, the U.S. Securities and Exchange Commission (SEC) has come under fire for adopting an enforcement-based approach to regulating the cryptocurrency industry. The Nasdaq-listed cryptocurrency exchange instantly refuted the SEC’s assertion that nine of the tokens listed on Coinbase are securities in its response to the SEC’s complaint.
Caroline D. Pham, commissioner of the Commodity Futures Trading Commission (CFTC), issued a statement regarding the incident on Thursday. She wrote: “The case SEC v. Wahi is a striking example of ‘regulation by enforcement.’”
In an interview with CNBC on Thursday, SEC Chairman Gary Gensler discussed his views on the regulation of cryptocurrencies.“I’m neutral about the technology but I’m not about the investor protection. These are a highly speculative asset class,” he emphasized, elaborating: “There are thousands of tokens, most of which have attributes of securities.”
3. Taiwan Financial Watchdog Against Credit Card Use For Crypto
According to a report by the business news portal UDN, Taiwan’s Financial Supervisory Commission (FSC) has instructed credit card issuers and banks to forbid clients from using credit cards as a payment method in transactions involving cryptocurrency.
The watchdog is noting the most recent decline in the value of cryptocurrencies as well as ongoing worries about the potential for money laundering involving virtual assets, which it also characterizes as being highly speculative and extremely volatile.
According to sources in the financial sector, the FSC made the request in a letter to the Taiwanese Bankers Association that was sent earlier in July. This week, the authority made no early comments or rejected the news. Later on, it told Forkast that it had requested that credit card companies not approve cryptocurrency service providers as retailers.
4. Yuga Labs Is Facing Potential Class-Action Lawsuit
According to a statement made by the law firm Scott+Scott late this week, a class-action lawsuit against Yuga Labs is presently being prepared. The claim in the case is that Yuga misrepresented Bored Ape NFTs and ApeCoin, the collection’s native Ethereum token, as investments with assured profits while in fact they had lost value over the past three months.
The plaintiffs in the case have not yet submitted a formal complaint to a federal court. Scott+Scott is still looking for plaintiffs who sustained losses in connection with the acquisition of Yuga-backed NFTs and tokens between April and June. An inquiry for comment regarding this story was not immediately answered by the company.
The court’s decision on whether non-fungible tokens are securities, akin to shares in a firm that could see their value increase, will be crucial to the suit’s success once it is filed. If a judge decides that the BAYC NFTs qualify as securities, Yuga Labs will have violated the disclosure and registration requirements that come along with providing securities.
5. Donald Trump Anticipates A More Serious Problem Than Recession For The Economy
In a speech delivered Friday at a “Save America” event in Arizona, former President Donald Trump cautioned that President Joe Biden’s budgetary policies could cause the United States to experience an economic depression. He made the remark in support of Kari Lake, a Republican running for governor of Arizona.
Trump expressed concern that the American economy would experience a downturn comparable to the Great Depression of 1929. According to recent data, the U.S. had its highest rate of inflation in four decades in May, up 8.6 percent over the previous year.
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