Blockchain Daily

Cryptocurrency ad ban: the backlash begins

Cryptocurrency ad ban: the backlash begins

The reputation of cryptocurrencies – particularly Bitcoin – have been damaged recently due to the cryptocurrency ad ban enacted by Facebook, Google and Twitter. The bans relate to crypto investments and ICOs. But now a group of crypto companies and outfits are fighting back.

The impact of the ban

The bans correlate with a huge drop in value, damaging investor confidence in both the safety and security of ICOs, and raising fears of digital currency being directly associated with online scams. The total market cap of crypto currencies has fallen below the $300 billion mark since the announcements, initially by Facebook and shortly followed by Google and most recently, Twitter.

The market’s response

In response, cryptocurrency and blockchain associations from Russia, China and South Korea are planning to file a class action against internet corporations enacting the cryptocurrency ad ban. Russian Cryptocurrency and Blockchain Association (RACIB), the Korea Venture Business Association (KOVA), and the Chinese Association of Cryptocurrency Investors (LBTC) are all part of the newly formed Blockchain Association (EBA), the group taking on the internet corporations that have authorised the ban on advertising cryptocurrencies.

It is thought that the basis of the lawsuit is cartel collusion. “We believe that this is a use of the monopoly position of these four companies, which have entered into a cartel agreement with each other in order to manipulate the market. The ban from these four organizations has led to a significant drop in the market in recent months,” RACIB President Yuri Pripachkin told Russian news outlet TASS. “We believe that if it turns out that the shareholders or managers of these companies own crypto wallets which they use for personal gain, using the position of their companies, they are subject to prosecution.”

While the lawsuit will be filed in the U.S, Pripachkin noted that he respected the separate attitudes to cryptocurrencies from state to state, highlighting Wyoming as a sympathetic entity to ICOs and token sales. The state has relaxed security regulations and has rendered cryptos exempt to state property taxes.