Crypto exchange Coinbase no longer provides algorand (ALGO) cryptocurrency staking services. This was announced on Twitter by the head of the Algorand Foundation, Stacy Warden. According to him, the news about the termination of staking came as a surprise to him. The exchange terminated the service unilaterally without prior notice.
The exchange later said it was repricing its services to reflect regulatory uncertainty. As Warden noted, staking restrictions apply only to individual investors. Trading of the ALGO token on Coinbase continues, Worden added. What exactly is the reason for the ALGO staking shutdown is unclear. Amid the news, algorand quotes in the ALGO/USD trading pair fell by more than 6% to $0.2, according to TradingView.
Earlier it became known that Coinbase received a Wells notice from the Securities and Exchange Commission (SEC). This means that the regulator has studied the activities of the company and found violations. It is assumed that the SEC may sue the cryptocurrency exchange Coinbase for violating the securities law. According to media reports, the lawsuit may be related to products that the exchange offers on the spot market, as well as services such as Coinbase Earn, Coinbase Prime and Coinbase Wallet. The exchange itself said that they were upset by the decision of the exchange regulator to sue the trading floor.
Coinbase announced on its blog that it has spent millions of dollars on legal support to develop a clear legal structure. Moreover, the company has repeatedly requested the opinion of the SEC to create a transparent business, but has never received a response. The exchange also added that it had repeatedly called on the exchange regulator to voice its opinion on the listing of tokens, but the SEC decided to ignore the call. The company believes that the lawsuit could result in injunctions, fines and claims for damages. However, the terms and amount of the fine are still unknown.
Source: bitcoinlinux.com
