How crypto bloggers may suffer

The US Federal Trade Commission has banned fake reviews and recommendations. What does this mean for crypto?

According to breaking news, the decision imposes financial and administrative restrictions on people who “sell or buy fake social media influencer indicators.”

FTC leadership unanimously supported the new rules, which would go into effect 60 days after publication in the Federal Register:

Fake reviews not only waste people’s time and money, they also pollute the marketplace and drive businesses away from honest competitors.

Lina M. Khan, chair of the FTC

The new policy also applies to crypto influencers. With the latest ban in place, unfair methods used to boost a channel or page on a social network will lead to fines and penalties from authorities. The FTC will also ban the use of tools that use AI technologies for such purposes.

At the same time, the ban applies only to cases where the account holder specifically orders or otherwise facilitates such a service. The rules also state that a fine will be imposed if the specified methods are used to obtain profit for commercial purposes.

Recently, the FTC noted a sharp increase in social media investment scams, particularly in cryptocurrency, which include fake messages promising guaranteed high returns with little or no risk.

Scammers are increasingly targeting social media users on major platforms with fraudulent investment opportunities, particularly in cryptocurrencies, said Andrew Raio, FTC consumer education specialist:

If you answer, the scammer will say that they have made a lot of money by investing in Bitcoin or another cryptocurrency. And they may offer you a unique opportunity that guarantees significant returns with little or no risk. But these are all lies designed to convince you and take your money.

The victim is directed to a fake investment site or app where the investment account appears profitable, but the scammer disappears after extracting as much money as possible, leaving the victim with nothing.

Crypto love scams

The FTC also warned of crypto scammers offering investment advice under the guise of romantic partners.

The regulator noted that scammers form an emotional bond with you, making you more likely to believe they are experts in cryptocurrency investing.

The scam usually begins with an unsolicited social media connection. The scammer carefully reviews the victim’s profile to establish trust and connection. Once a relationship is established, the conversation turns to investments, with the scammer claiming that their top priority is the victim’s financial security.

More restrictions are coming for the crypto space

In addition to cryptocurrency phenomena, betting platforms have also previously come under the scrutiny of US authorities.

In early August, the U.S. Congress asked the Commodity Futures Trading Commission to ban political betting, which officials said could affect the outcome of the U.S. presidential election.

Five senators and three members of the House of Representatives sent an open letter to CFTC Chairman Rostin Benham, warning that such mechanisms could undermine public confidence in the electoral system.

The initiative is also targeting the Polymarket betting platform, where members of the crypto community predict the outcome of the presidential election. According to the latest data, the volume of bets has exceeded $606 million. Vice President Kamala Harris is ahead — users estimate her chances of winning at 53%, and 44% of people placing bets believe in the victory of former President Donald Trump.

Source: Polymarket

At the same time, the total political section on the platform exceeds $ 1 billion in terms of funds. Polymarket participants bet on hundreds of events.

US politicians suddenly fall in love with cryptocurrencies

Despite statements from individual regulators and government officials, politicians have also increased their interest in cryptocurrencies ahead of the presidential election, most notably Trump, who in 2018 ordered the U.S. Treasury Department to phase out Bitcoin (BTC) and in 2021 called it a scam and called for the industry to be regulated.

While Democrats have not publicly expressed their support for digital assets, they have not called for more regulation or bans anytime soon. Furthermore, with approval from above, the Securities and Exchange Commission would have even approved one of the documents needed to list an Ethereum ETF.

Therefore, it is obvious that American politicians have a staunch attitude towards cryptocurrencies.