Crypto.IQ Daily Digest June 29, 2018

ADOPTION, DECENTRALIZATION

Facebook Lifts Cryptocurrency Ban Amid Rumours of Coinbase Bitcoin Exchange Takeover

IQ THOUGHTS

As a company whose main focus is cryptocurrency, we were not happy with Facebook’s ban on all advertising content related to our sector. It was a blanket answer to a problem that needs a more targeted approach, i.e. going after the actual bad guys instead of everyone.

So we’re glad to see them back off the carpet bombing approach, but we will be closely watching Facebook’s moves into the crypto space because we think the company could be a potent force for centralization, which is a bad thing.

Another factor to consider here is that Facebook has gobs of data on just about everyone. Marrying that data to what Coinbase already has seems like a concentration of data that could rival what, say, a government agency might keep. Too much.

On the positive side of things, Facebook could go a long way toward encouraging mass adoption of cryptocurrency.

We just can’t help wondering at what cost.

REGULATION

CryptoUK Responds to the BoE’s Remarks on Cryptocurrencies Being a ‘Reputational Risk’

IQ THOUGHTS

Trust the British to be polite about a cryptocurrency battle when the rest of the world is duking it out with bloody fists. Still, it’s entertainment for those of us who are used to a more visceral exchange of ideas. Case in point: Crypto Twitter.

The Bank of England’s CEO sent a letter to British banks, insurance companies, and designated investment firms, basically saying they might sully their reputations through associations with crypto.

CryptoUK, the first self-regulatory trade association for the U.K. cryptocurrency industry, fired back with indignance, and rightly so. We would echo the sentiments of Iqbal V. Gandham, chair of CryptoUK, who said that most people in crypto are good and honest. We also like that the association took regulators to task for not stepping up in a timely manner with sensible regulation.

He said:

“Currently, the risks from cryptocurrencies largely stem from low levels of consumer knowledge and a lack of an appropriate regulatory framework surrounding them,” he said. “The U.K. has the potential to become a world leader within the crypto economy. We urge governments and regulators to ensure that the U.K. is well-positioned to seize the opportunities that this sector could bring.”