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Why Did the USA Block Telegram’s Cryptocurrency?

15 May 2020, 11:39
Votes: 2

According to the latest cryptocurrency news, the USA decided to suspend the Telegram’s cryptocurrency project TON. This blockchain platform had all chances to become a revolution in the cryptocurrency market.

Why Did the USA Block Telegram’s Cryptocurrency?

The project has been developed for monetization of Telegram – an instant messaging service owned by Pavel Durov. This blockchain-based system was called TON and it would operate using a new cryptocurrency – Gram. The platform creators say that they have applied some elements of Bitcoin and Ethereum to their product.

The US SEC has solid reasons to block the cryptocurrency

Notwithstanding the fact that Durov has extensive plans for Gram, the USA Securities and Exchange Commission (SEC) has come to the decision to block it. The main reason for this was that Telegram had to register the cryptocurrency trade as securities transaction but the company didn’t provide the information about its financial status, risks, and other details that were necessary according to the USA laws.

Earlier, Telegram was searching for ways to raise funds and enticed investors to develop the platform. However, the agreement states that if the project isn’t launched until April 30, 2020, all tokens will be returned. The date came and the company had to compensate 1.7 billion dollars. Durov said that TON was suspended because the North American investors could not participate in it.

Read more: How to find out the price of Ethereum?

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