Social Media Giants Sued Over Crypto Ad-Ban
When Twitter banned all ads relating to cryptocurrency on Tuesday, it completed a clean sweep of social media companies who have decided to excise crypto ads and services from their sites.
However, with ads from public companies listed on major stock markets still being allowed, many see this as a move that will monopolise the cryptocurrency market in the hands of a select few. Several blockchain associations have joined forces to make their voices heard by filing a lawsuit against Facebook, Google, Twitter, and Russian search-giant, Yandex.
The Russian Cryptocurrency and Blockchain Association (RACIB) has joined with similar associations in Korea (KOVA) and China (LBTC), to form a continent wide coalition of disgruntled businesses who are questioning the validity, and legality of the social media ad-ban.
The Eurasian Blockchain Association’s (EBA) Yuri Pripachkin has suggested “cartel collusion” on the part of the four companies in question, adding: “We think these four companies are using their monopoly power and have colluded to manipulate the market.”
The cryptocurrency markets fluctuated wildly in the last few months following Facebook’s crypto ad-ban in January, and the Twitter ban similarly caused the markets to dip, although they started to rise again shortly afterwards.
The EBA maintains that the social media companies can be sued if it is discovered that their managers and shareholders own and use crypto-wallets, suggesting that they will targeting the companies on a conflict of interest basis. Pripachkin said: “We believe that if it turns out that the shareholders or managers of these companies own cryptocurrencies, which they use for personal gain, using the capabilities of their companies, they are subject to prosecution.”
Lawyers for EBA are currently researching state laws in the United States to target the region most sympathetic to affairs relating to cryptocurrency. Wyoming is thought to be a likely destination for the lawsuit.
The RACIB claims that the ICO ban alone could cost Russia’s economy $1.5 billion in the coming years. The ICO’s held abroad by Russian nationals accounts for 10% of the global ICO market, and will experience a hit in the wake of the social media ad ban. With such numbers being floated around, it is unlikely the coalition will give up without a fight.
Some industry commentators say the ad ban will be an overall positive for cryptocurrency, and will help foster a legitimate reputation by eliminating the online scams which often target naive social media users.
In Russia, lawmakers have moved to nip the ban in the bud by introducing laws which legalize crypto-exchanges, while also proposing a registry of cryptocurrency miners in an effort to combat fraudulent practices.