This week in the crypto world we saw Bitstamp cull seven alts, PayPal launch its own stablecoin and Worldcoin face regulatory kickback.
Anyone shocked? Really?
Bitstamp Cuts Seven Alt Coins
Bitstamp this week announced that it will permanently halt the trading of seven alt coins in the U.S. at the end of the month, citing the “dynamic regulatory environment.” The coins, including big hitters such as SOL and MATIC, will be removed on August 29 as Bitstamp seeks to remove the possibility that it will be pulled up by U.S. regulatory bodies for sales of securities.
While removing the coins now doesn’t stop agencies such as the Securities and Exchange Commission from taking action against Bitstamp for prior sales, it does show that the exchange is doing what it thinks best to comply in the absence of any clear guidance.
PayPal Launches PYUSD Stablecoin
PayPal this week unexpectedly joined the stablecoin race by launching its own dollar-backed effort, PYUSD. The stablecoin is underpinned by Paxos, which until recently was tasked with minting Binance’s BUSD stablecoin, and is backed by a combination of US dollar deposits, short-term Treasuries, and equivalent cash assets, the San Jose-based payments giant on Monday.
Not everyone was thrilled with the development, however, with Congresswoman Maxime Waters revealing how she was “deeply concerned” by the launch and Tether boss Paolo Ardoino having to deny that the launch would negatively impact the USDT stablecoin.
Worldcoin Has Week of Woes
Sam Altman’s Worldcoin project has had a hell of a week. First, a warehouse belonging to Worldcoin’s operator, Tools for Humanity, was raided by Kenyan police who executed a search warrant against the premises and confiscated documents and “machines they believe stores data gathered by the firm,” potentially the famous eyeball-scanning orbs.
Then, just days later, Argentina’s Agency for Access to Public Information (AAIP) announced that it was conducting an investigation into the project. The AAIP works to ensure that companies that collect citizens’ personal data look after it responsibly and allow individuals access to their data, and it seems that it may have concerns over the way that Worldcoin operates.
