ICOs on the Wane, Regulators Hawkish
Cryptocurrencies are a great way for you to kick-start your company and not accrue any of the risk that normal transaction entail with themselves. It is a reliable mechanism for venture capitalist to plunge into new areas of expertise, but it also puts them at a greater risk.
Meanwhile, if you are an investor going ahead with Initial Coin Offerings is noteworthy prospective. But bear in mind that social media, including Facebook is now on the offensive against misleading and deceptive ads that touch upon financial products and services.
New regulation will be introduced that will monitor all types of ads and try to determine whether they are genuine or a veiled attempt to mislead customers into investing heavily into something they may be led to believe is worth the hassle.
Ads touting the benefits of cryptocurrencies are all over the place. They enjoy a leeway that should not be given to anyone who is trying to garner funds and turn a profit out of other people’s money. That is why regulators have done well to intervene and prevent any attempt of foul play.
The France market watchdog has spearheaded a campaign against cryptocurrencies recently. Perhaps calling it so is a misnomer. Rather, France wants to treat crypto assets as precious metals – a move also backed by Austria with Austria’s own legislation, naturally.
The rising regulation of the markets is partly in contrast with Turkey who has been buzzing with news in the last hours that the country is now bringing about its own crypto chunk on the market!
Meanwhile, the Securities and Exchange Commission (SEC) Commodity Futures Trading Commission (CFTC) is now investigating the assets of companies that are possibly involved with irregular trading of cryptocurrencies.
“If they’re looking to bring a case against a company, they will certainly review all the public statements that the company has made and that would obviously include advertisements.”
Why do regulators take a dim view of crypto adds?
Why regulators target crypto ads is plain as rain. They are blatant and they tend to mislead. The crypto craze is potent and it often leads people into temptation. When Bitcoin hit almost $20,000 in December 2017, citizen started to mortgage their homes in order to snap up ethereal valuables.
These lying ads are undermining the credence of mainstream media as well! A logo stolen from the New Zealand Herald with a picture featuring former New Zealand prime minister John Key claimed that Mr Key had invested in cryptocurrencies, prompting others to do so. Not everyone is protected. Even mainstream exchanges are falling prey to greed. Coincheck kept information on a low-security crypto wallet, when in its own words having cold storage for valuable assets is paramount.