RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Thursday, rising 1.80% to $41,935 as of 11:34 a.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,128, up 2.55%, according to data from Coindesk.
The UK and Spain are introducing crackdowns on cryptocurrency advertising this week.
UK Finance Minister Rishi Sunak plans to subject crypto advertisements to the same rules that apply to financial promotions to end misleading claims that cause investors to lose money.
In Spain, the government also regulates crypto advertisements, with ministers targeting social media influencers to ensure investors are aware of the risks.
“I think it’s good that this is being looked at so that consumers can be better protected,” said Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper.
“In the past, scammers have abused my face as CEO of Cryptohopper, and the faces of other more prominent people in crypto, for a time by using them in malicious advertisements. Unfortunately, there It was extremely difficult to do anything about these fraudulent advertisements,” he added.
Anto Paroian, COO of cryptocurrency hedge fund ARK36, added: “Unfortunately, some internet personalities have sometimes abused their audience’s trust by failing to disclose that they were paid to promote a certain cryptocurrency.
“Some of the coins endorsed in this way unexpectedly lost almost all of their value in a short period of time. As a result, many unsuspecting retail investors suffered significant monetary losses.
“Therefore, recent regulatory efforts in Spain and the UK aimed at cracking down on dishonest crypto advertising may indeed have a net positive effect on the overall safety of the digital asset market for an average investor.”
Warning against Russian pyramid schemes
Russians have invested 5 trillion rubles ($67 billion) in crypto and some of them could lose it all because cryptocurrencies are not backed by anything, said Anatoly Aksakov, an MP playing a key role in the regulation of Russian crypto space.
Many of these people are unqualified investors and as such pyramid schemes are likely to occur, Aksakov added.
Repeating warnings previously issued in an interview with the Duma parliamentary TV channel, the Russian lawmaker pointed out that there is no stability in the digital currency market.
Crypto prices can quickly move 20-30% one way or the other, according to Bitcoin.com.
“Therefore, it is important to regulate the market, to protect, above all, our citizens, to establish taxation and certain rights for the owners of cryptocurrency. However, they must be identified,” Aksakov said.
Even after Bitcoin’s recent plunge, CEO Michael Saylor said he would never give up on pushing MicroStrategy’s multi-billion bet on the world’s biggest cryptocurrency, Bloomberg reported.
The enterprise software company’s growing Bitcoin stack has effectively made its stock a proxy for the digital asset.
“We are not sellers, we are just acquiring and holding bitcoins, that is our strategy,” Saylor said in an interview with Bloomberg.