[Bitcoin Now] Kraken Halts Staking Amid US SEC Sanctions... Drops 4.8%

[Asia Economy Reporter Lee Jung-yoon] The U.S. Securities and Exchange Commission (SEC) imposed sanctions on the staking service of the cryptocurrency exchange Kraken, causing the price of Bitcoin to plunge nearly 5%.

Image source=Reuters·Yonhap News

According to the global cryptocurrency market tracking site CoinMarketCap, as of 9:21 a.m. on the 10th, the price of Bitcoin was recorded at $21,849 (approximately 27.64 million KRW), down 4.80% from the previous day.

The price of Bitcoin declined following the news that Kraken, the world's third-largest exchange, would suspend its staking service due to the SEC's sanctions. Staking refers to the process of entrusting cryptocurrency to a blockchain network that uses the Proof of Stake (PoS) method and earning coins as a reward for participating in blockchain operation and verification. The SEC has been investigating services provided to customers by exchanges without reporting to regulatory authorities. Kraken announced that it has agreed with the SEC to suspend its staking service and pay a fine of $30 million on charges of providing unregistered services.

Gary Gensler, Chairman of the SEC, explained on Twitter, "Most firms do not provide customers with information on how they protect the coins entrusted by customers."

Cryptocurrency specialized media CoinDesk reported, "The cryptocurrency market failed to record an upward trend as regulatory issues took precedence over macroeconomic problems."

Cryptocurrency investment sentiment also weakened. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investment sentiment as an index, recorded 48 points (neutral) on the day, down 7 points from 55 points (greed) the previous day. Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.