Letitia James stated that investors are losing billions in cryptocurrencies, which led her to believe that buying them creates pain. The New York Senate approved a bill to ban the PoW mining of cryptocurrencies, seeking to prevent the activity in the state.
New York is pursuing efforts to ban the proof-of-work (PoW) mining of cryptocurrencies like Bitcoin (BTC). The attorney general told investors that they are at risk when buying crypto assets.
In a recent investor alert, Letitia James, the New York Attorney General, stated that investors lose billions in cryptocurrencies. She stressed that even digital assets, which people know well and trade on renowned exchanges, can crash. For that reason, the lawyer believes that investments in crypto assets create more pain than benefit to investors.
The New York Attorney General also urged New Yorkers to exercise more caution when investing in cryptocurrencies. Given that those digital assets are volatile, she said they could become a source of anxiety rather than fortune.
The New York Senate Passes a Bitcoin Mining Moratorium
The New York Senate recently approved a controversial bill to ban the PoW mining of cryptocurrencies. In that way, they seek to prevent any new Bitcoin mining operations in the state.
In April, the state assembly first passed the bill to ban PoW cryptocurrency mining. Its goal is to prohibit new digital mining operations in the state within the next two years. The draft law goes to the governor to make New York the first US state to impose a moratorium on that activity.
The primary users of the PoW consensus are Bitcoin miners, as it is one of the most secure and decentralized forms of doing the activity. However, there is much controversy because it requires high consumption of energy.
South Korea Intensifies Investigations and Regulations on Cryptocurrencies
The South Korean Financial Supervisory Service (FSS) recently investigated cryptocurrency-powered payment gateway services. The FSS is the financial regulator operating under the Financial Services Commission (FSC), both government institutions from the Asian country.
A local media outlet reported that the FSS had required 157 payment gateways to inform about cryptocurrency-related services. Those platforms also have to reveal their plans for the future and the disclosure of digital assets. However, the FSS claimed that only 6 offered services with digital assets.
The FSS is the primary South Korean financial regulator, but the government announced the upcoming launch of the Digital Assets Committee. They said that it is a temporary solution to structure the virtual assets sector after the collapse of Terra (LUNA).
Following Uproar in the Community, Buterin Raises Optimism
Vitalik Buterin, the CEO of Ethereum, has defended the participation of smallholders in the governance of the protocol. The programmer recently supported the Optimism (OP) governance proposal on Twitter despite the latest backlash on the blockchain.
Buterin continued to thank Optimism for their efforts to use the OP token for gas fees. He believes that this can encourage explicit representation of the interests of token holders, which will eventually benefit the network.
The co-founder of Ethereum added links to two blog posts where he discussed why he opposes token holder-centric governance models. The publications also dealt with the new houses in the Optimism governance structure.
By Alexander Salazar
