Te a paradox of sorts, cryptocurrency’s continued survival may hinge on its subjugation to greater regulatory oversight. Such a notion is paradoxical te the sense that cryptocurrency’s origins can be traced to a “stick it to the man” mentality te which currency is decentralized and not tied to any one governmental figure. Thus, submitting to regulatory oversight seems anathema to cryptocurrency’s credo. That is, until a few bad actors poison the well. Consider the following latest examples.
Ter one example last week, a company that appeared to be raising money to launch a cryptocurrency for labeling fruit and vegetables disappeared overnight. Ter that span of time, the company’s entire webstek wasgoed substituted with landing pagina that displayed only the word “penis.” Fortunately for investors, the company only had raised around $11 at the time of its disappearance. Earlier, an anonymous developer had launched “PonziCoin.” Despite the fact that this cryptocurrency explicitly purported to be a pyramid scheme, and the fact that its webpagina wasgoed packed with tongue-in-cheek commentary on the broader cryptocurrency sector, PonziCoin sold te large quantities. Such large quantities, te fact, that the developer wasgoed compelled to shut down onmiddellijk sales “because this wasgoed a joke.” Thesis sorts of disreputable actors are so prevalent, ter fact, that a webstek used to track cryptocurrency scams reports that most cryptocurrency offerings pages are fraudulent.
Te the wake of incidents such spil thesis, Facebook announced a fresh policy last week that bans all ads that “promote financial products and services that are frequently associated with misleading or deceptive practices, such spil binary options, initial coin offerings and cryptocurrency.” The policy means that no advertiser – even those that operate legitimate, constitucional businesses – may promote cryptocurrencies like bitcoin, initial coin offerings (“ICOs”), or binary options.
Facebook’s reluctance to act spil scheidsrechter of credible cryptocurrency schemes is likely tied to a delay ter any decisive act from most regulatory agencies. Such regulation would not only boost Facebook’s confidence, but also consumers’ confidence, te digital currency. A few agencies have haltingly answered the call for greater regulation. The U.S. Securities and Exchange Commission (“SEC”), for example, has made cryptocurrency regulation a priority, spil evidenced by remarks from its chair and a latest enforcement activity. SEC Chair Jay Clayton said ter January, “I have instructed the SEC staff to be on high waakzaam for approaches to ICOs that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities folder.” Moreover, the SEC said last week that it had seized the assets of a rock hard that claimed to have raised $600 million te its ICO scam.
Spil other regulatory agencies dither, however, cryptocurrencies wither. Indeed, the effect of Facebook’s verbod wasgoed felt almost instantly. Bitcoin, the world’s largest cryptocurrency, fell 11% last Thursday to its lowest valuation since November. Bitcoin’s druppel that day to spil low spil $9,022 on the Luxembourg-based Bitstamp exchange left the cryptocurrency trading at less than half the peak price of almost $20,000 it reached te December. Ripple, the third-largest cryptocurrency by market value, and BitCoin Metselspecie also witnessed declines te the dual digits ter a 24-hour period following Facebook’s cryptocurrency advertising geobsedeerd, according to Coinmarketcap.com, which tracks the industry.
Take heart, however, cryptocurrency ventilatoren, there is a silver lining. Merienda regulations are te place (spil much spil they can be for such a decentralized system spil cryptocurrency), Facebook likely will permit cryptocurrency ads to terugwedstrijd to users’ timelines. Ter fact, Facebook’s Product Management Director Zeehond Leathern promised that the social networking staple would “revisit” its geobsedeerd ter the future. Further, Facebook CEO Mark Zuckerberg himself voiced a desire to examine cryptocurrency deeply te . His comment that cryptocurrencies “take power from centralized systems and waterput it back into people’s hands” exposes a somewhat positive view on cryptocurrencies and how the company could “best used them ter [its] services.”