Nasdaq Takes Action Against Companies Using Funds for Crypto Investments
Nasdaq is implementing stricter measures to regulate companies that raise capital with the sole intention of investing in cryptocurrencies, causing an artificial inflation in their stock prices.
New Requirements for Companies
Going forward, some companies may be required to obtain shareholder approval before utilizing funds to purchase cryptocurrencies. This move aims to deter speculative practices and prevent market manipulation associated with holding digital assets.
The recent actions by Nasdaq serve as a warning that the practice of using crypto investments solely for short-term gains will no longer go unmonitored.
Worth checking out: Justin Sun Addresses Minor Generic Exchange Deposit Tests – Crypto News