several regulators have warned of illicit activity surrounding cryptocurrencies like bitcoin.
In September, China banned a practice known as “initial coin offerings” (ICOs). An ICO is usually a crowdfunding method for firms to raise funds by selling completely new cryptocurrencies.
China’s regulators also moved to close down domestic bitcoin exchanges later of which month. Both measures sent the cost of bitcoin down sharply.
as well as on Wednesday, the U.S. Securities as well as Exchange Commission said of which celebrity endorsements of ICOs could be “unlawful” if they do not disclose how they are benefiting.
Banking executives like JPMorgan CEO Jamie Dimon as well as Blackrock CEO Larry Flint have also criticized the cryptocurrency.
Dimon has made several comments on bitcoin, as well as last month said of which investors “stupid enough to buy bitcoin” would certainly “pay the cost for the item one day.”
Flint called the virtual currency an “index of money laundering” of which same day, raising concerns over fraudulent activity.
– CNBC’s Arjun Kharpal as well as Evelyn Cheng contributed to This particular report