As the crypto crisis carries on at a seemingly unstoppable pace, its effects have been felt differently across the globe. Some countries have made a very firm stance against taking further risks in digital assets, while others see this as an opportunity to conduct lucrative business.
At this time, it is difficult to predict where the markets are headed, and as a result, some countries are becoming nervous. Only those nations that have been stalwart supporters of digital assets are still actively involved, but even they have become a lot more cautious.
With August predicted to be another tough month for investors, one can only assume that the mass exodus that has been happening over the past few months will continue.
Singapore-based Crypto Companies Feel the Pinch
In a shocking turn of events, Hodlnaut, a crypto-lender based in Singapore has announced that it will suspend all withdrawals, deposits, or trading on all of its platforms. The company made the announcement on Monday, citing the uncertainty in crypto markets as the cause.
What makes this announcement so surprising is that as recently as March this year, Hodlnaut applied for a license from the Monetary Authority of Singapore to be allowed to provide services for digital token payments. It was given principal approval by the government and looked set to be granted the license.
However, that was before the digital markets went belly-up the following month, forcing Hodlnaut to withdraw its application and, according to the company, focus more on preserving assets and stabilizing their liquidity.
Another Singapore company, Three Crows Capital, also succumbed to the crypto meltdown and was forced to file for bankruptcy last month. Given the fact that Singapore was widely regarded as the Crypto capital of Asia, these latest developments are a sign of how bad things have become in the industry.
German Crypto Exchange Files for Insolvency
In similar news, Nuri GmbH, a Berlin cryptocurrency exchange, has also filed for insolvency. The company, which has been growing steadily over the last seven years, blamed its current state on the collapse of the Celsius Network in the wake of the massive sell-off of assets in the digital market.
Unlike the complete shutdown of operations witnessed at Hodlnaut, Nuri assured its investors that they can still access their deposits for the time being. However, that is unlikely to last much longer if the insolvency claim is approved by the German government.
Iran Is One of the Few Optimistic Nations
On a more positive note, it seems Iran knows something that all other countries are yet to catch up on. While everyone else is running for the hills, the Iranian government has made a bold move by approving its very first crypto-funded import order, to the tune of $10 million.
Whether this move is a sign of their confidence in the crypto market or an act of desperation from a government currently struggling to acquire foreign currency due to international sanctions is up for debate.
The Future Is Not Looking Good for US-based Crypto Companies
Meanwhile, in the US, the blitz attack launched by the Securities and Exchange Commission (SEC) on Ponzi schemes and fraudulent individuals within the crypto industry has had investors fearing the worst.
The future of digital assets in the country was further put in doubt when the Department of Justice (DOJ), announced that it had indicted a group of former employees of the crypto giant, Coinbase, on accusations of insider trading.
With the SEC filing civil lawsuits from one end and the DOJ launching criminal investigations on the other, it is clear that the future of crypto is uncertain, to say the least.
Well-known crypto companies, such as Ripple and Coinbase are currently being investigated by various departments on suspicion of securities fraud. If these companies are found guilty of these charges, then US investors will have another headache on their hands.
At the beginning of the year, no one could have guessed that countries that have always supported crypto trading, such as Singapore and Germany, would find themselves having to deal with bankrupt companies within their borders.
However, that is the way it is panning out right now, and investors have no choice but to wait and see how the situation ends.
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