Key Points
- Apple co-founder Steve Wozniak won an appeal against YouTube for using his likeness in crypto scams.
- Regulators’ criticism of Bitcoin is leading more people into the hands of scammers.
FTX co-founder Sam Bankman-Fried has been sentenced to a 25-year prison term.
In another significant development, Steve Wozniak, the co-founder of Apple, has successfully appealed against YouTube for using his image to promote cryptocurrency scams on the platform.
Crypto Scams and Their Impact
The rise of cryptocurrency scams is a growing concern, especially as digital currencies gain mainstream attention.
As the popularity of cryptocurrency increases, so does the number of scams.
This has led to an unfortunate situation where regulatory criticism of Bitcoin is pushing more people into the hands of fraudsters.
In many cases, individuals associated with blockchain technology have been impersonated on social media platforms, with scammers attempting to defraud their followers and friends.
Despite efforts to bring these criminals to justice, progress has been slow.
Regulatory Approach and its Consequences
Regulators in Europe and the United States often target Bitcoin, which they perceive as a “bogeyman”.
The European Central Bank (ECB) recently commented that Bitcoin has failed to live up to its promise of being a global decentralized digital currency and is rarely used for legitimate transfers.
The ECB’s comments have given rise to several debunked myths about Bitcoin’s association with criminal activities.
ECB officials Ulrich Bindseil and Jürgen Schaaf made several misleading claims about Bitcoin, including that its fair value is zero because it has not fulfilled its original promise.
They also criticized Bitcoin for its supposed contribution to pollution, failing to mention that Bitcoin miners have significantly shifted to renewable energy sources.
Furthermore, they claimed that Bitcoin is used for illegal activities such as money laundering and terrorism.
They also alleged that Bitcoin’s price is subject to manipulation and that its market cap and price indicate a speculative bubble.
Finally, they stated that authorities have failed to regulate Bitcoin, leading to misconceptions and potential harm.
The criticism of Bitcoin by regulators either reflects a lack of understanding of the sector or an intentional effort to keep certain consumers and businesses out of cryptocurrencies.
This approach does not instill confidence in their technological abilities and does not provide citizens with the necessary tools to protect themselves against scams.
A balanced regulatory approach that acknowledges the risks while recognizing the potential of digital assets is more beneficial.
Such an approach would provide consumers with a comprehensive understanding of these new assets, enabling them to make informed decisions.
Dr. Paolo Tasca, a professor and economist, is a guest author who has founded two blockchain organizations and advises several organizations. He has also worked with various international and national institutions.