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Longroot Loses License to Operate Digital Token Platform.

Longroot Loses License to Operate Digital Token Platform.

The Securities and Exchange Commission (SEC) has decided to revoke Longroot (Thailand)’s license to operate as a digital token offering (ICO) portal service provider, effective Monday. This action is due to the company’s failure to meet the regulatory requirements set by the SEC.

The SEC’s statement indicated that Longroot did not fulfill the necessary financial qualifications, as well as the appropriate personnel structure and operational system mandated by the regulator. Additionally, the company failed to prepare and submit required reports regarding its IT system to the SEC within the designated timeframe.

As a result, Longroot has been deemed incapable of meeting the SEC’s standards and unable to rectify the identified deficiencies necessary for the proper functioning of an ICO portal.

“The SEC is mandated to oversee ICO portals to ensure compliance with applicable regulations. ICO portals must consistently maintain the qualifications established by the SEC board during their operation and service provisions to benefit investors,” the statement emphasized.

The SEC noted that Longroot currently has no customers or pending transactions. In a related development, digital asset prices rebounded on Tuesday after a significant selloff on Monday, which affected various risky assets, including stocks, due to fears of a potential US economic recession.

According to CoinGecko, the crypto market lost a total of $270 million on Monday, witnessing an 11% drop in Bitcoin’s price, along with a 21% decline in Ethereum’s price, among other risky assets.

On Tuesday, cryptocurrency prices experienced a slight recovery, with Bitcoin rising 4% to $55,441, Ethereum climbing 7% to $2,497, and Binance Coin (BNB) increasing by 9% to $480.

The cryptocurrency sell-off mirrored the decline in Asian stock markets. Japan’s Nikkei 225 index plummeted by as much as 7%, extending losses that began last week after the Bank of Japan announced an increase in interest rates to their highest level in 16 years.

The Nasdaq also fell 3.4% last week, entering correction territory, marking its worst three-week losing streak since September 2022. This decline was led by decreased stock prices of major companies like Amazon and Nvidia.

The decrease in stock prices was attributed to disappointing earnings reports, combined with a weaker-than-expected US jobs report, an increased unemployment rate, and a slowdown in the manufacturing sector.

Analysts now believe it is likely that the Federal Reserve will lower interest rates in September by 0.5%, bringing it down from the current range of 5.25-5.50%.

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