Facebook has done a fair bit lately to overhaul itself. Following news that the social network have abetted foreign forces to stilt the outcome of the 2016 US presidential elections has added to the woes of Facebook.
So it is understandable that the company would like to steer clear from controversy, be that Bitcoin or Russian snoops spreading false facts.
Just now, Facebook has announced that it is banning all advertisements that have something to do with binary options, initial coin offerings (ICOs) and all sorts of cryptocurrencies.
But other than security reasons and Facebook’s new-assumed mission of a do-gooder, there is a more meaningful reason for the change. Facebook has indeed decided to shift its policy and put the emphasis of users and meaningful interactions.
The upshot of all of this is that the social network will be used less and less as a marketing tool.
But Facebook’s decision comes at a particular time. A week ago, there has been reports that the US Commodity Futures and Trading Commission has shown interest in Bitfinex, one of the world’s largest coin exchanges.
A subpoena has been issued, according to sources. But other than that the US Commodity Futures and Trading Commission has also looked into Tether, a digital coin company that is linked with Bitfinex. Allegedly, some of the people running Bitfinex are also in charge of Tether.
But this is hardly the first salvo from the war that regulators have wagered on digital exchange huts.
In a news overview we reported that AriseBank, a virtual crypto currency bank, has been shut down by the US Securities and Exchange Commission. Allegedly, AriseBank raised $600 million through Initial Coin Offerings (ICOs), a rather substantial sum that has rightly attracted the worried scrutinizing gazes of regulators.
AriseBank’s website has been taken off the Internet and the company’s lawyer could not be reached for comment.
How have crypto assets been faring?
Bitcoin has been doing rather well, despite a further dip in its price, below the $10,000-threshold.
However, crypto assets remain buoyant. Observers have been happy to say that this is mostly due to the fact that the economy is in a greater shape than it has been for the past decade or so.
Naturally, investors are seeking an outlet for the bubbling crypto craze. However, how tenable the long term could be is anyone’s guess.
Meanwhile, Asia is in a regulator no-no. On Tuesday, South Korea introduced a set of measures that lay the groundwork for new rules for the crypto sector.
This is not surprising given that South Korea is in fact the world’s third-largest crypto market, according to a BBC report.
Meanwhile in Japan, a recent hacker attack deprived Coincheck, a local behemoth, of $500 million – not an unsubstantial sum. Previously, South Korea also suffered belligerence from North Korean hackers.
It is a particularly touchy point for some Asian countries as they easily see these digital coins fuel rogue regimes, which pose danger to the whole region.
However, the heaviest hit for Bitcoin came from China who had decided put the crack on Bitcoin and exchanges and all associated companies. The decision of the Chinese government to discontinue cryptocurrency trades resulted in a 20% slump of Bitcoin’s currency.
But a strong global economy is now fuelling not only traditional growth. Global leaders are openly debating the possibility of laying a meaningful groundwork for all cryptocurrencies out there.
It is to be expected that central regulatory institutions, including the European Central Bank (ECB) will act quickly and try to cotton on cryptocurrencies before they have spiralled largely out of control.
There are countless opportunities for cryptocurrencies and their proper adoption. However, to make the most of this, governments and private firms cannot sit idly by. Facebook’s decision to ban crypto ads signals the commitment of the social network to do away with backing for-profit organizations.
However, it may just hint that the future of the crypto world is still uncertain, and rather a grey legal area.