The crypto sphere is certainly no stranger to cryptocurrency FUD. Social media platforms and groups are awash with the stuff, so much so that it is becoming increasingly harder to find any reliable information on them. In the latest twist, bogus emails have been sent out to US media organizations over an alleged crackdown on cryptocurrency in China and Hong Kong.
The mainstream media needs no encouragement for its ongoing denigration of Bitcoin and its brethren. A tsunami of cryptocurrency FUD has gushed out of the big names in ‘news’ recently, featuring salacious terms such as ‘fraudulent,’ ‘criminal,’ ‘Ponzi,’ ‘bloodbath,’ ‘bubble,’ and … well you get the picture. It is funny how this doesn’t happen when centralized stocks and shares take a nose dive.
As reported in today’s SCMP, a number of fake emails and bogus press invitations have been distributed to US media companies, claiming that the Hong Kong Monetary Authority (HKMA) and People’s Bank of China are about to jointly introduce new measures to crack down on:
…all aspects and services of bitcoin trading in both mainland China and Hong Kong.
The spurious messages from what appears to be a spoofed domain name claimed that the PBOC and the HKMA will announce a new anti-money-laundering regulatory framework next week encompassing:
…all virtual currency services and activities of both individuals and business including market makers, mining operators, trading platforms and wallets.
It has been speculated that the emails could be a ploy by traders seeking to profit from a further decline in cryptocurrency and Bitcoin on the futures markets. The Hong Kong Monetary Authority has already confirmed that there was no such clampdown or plan to do so.
Cryptocurrency prices have been especially volatile when repeated news of regulation and prevention of criminal activity gets twisted into a ‘complete crypto ban’ by mainstream media companies, which are often owned by bankers and investors.
Leonhard Weese, president of the Hong Kong Bitcoin Association, implied that only those shorting Bitcoin would profit from further cryptocurrency FUD:
I’m not sure it always works, but especially when they can make use of mistranslations and ambiguities, I’m sure they can spread a bit of panic … especially in an immature market with a very low barrier to entry, and where there are many day traders who might be manipulated that way.
As in Japan, regulators in Hong Kong remain relaxed with cryptocurrencies. The current stance of the HKMA is that Bitcoin is a digital commodity and can be traded like other commodities. China, as we know, has already stamped an oppressive foot of control onto the industry, as it has already done with the internet and freedom of information in general.
How do you react to mainstream media FUD? Add your thoughts below.
Images courtesy of Bitcoinist archives.