A BAN on cryptocurrency adverts will do more harm than good, a crypto-backed peer-to-peer lender has warned.
Lendingblock, which lets individuals lend in a range of digital currencies such as Bitcoin, Ethereum and Ripple, said rather than Google, Facebook and Twitter pursuing a current ban on cryptocurrency adverts to help clamp down on scams, they should help promote education and awareness.
“Wherever there is money – be that internet banking, crowdfunding or even cashpoints – people are scammed,” Lendingblock said.
“That doesn’t mean every single financial institutions should be prevented from marketing to customers.
“So why are technology companies pushing the panic button when it comes to cryptocurrency?”
Lendingblock warned a complete blackout on information may be “the easiest option” but warned that cryptocurrencies aren’t going anywhere so it would be better to partner with the industry and ensure consumers understand the market.
The platform raised $10m (£7.4m) through an initial coin offering earlier this year.
Unlike other crypto-backed P2P platforms, Lendingblock uses various blockchains, meaning lenders and borrowers can use multiple digital currencies rather than just one.
Borrowers post the amount and type of digital currency they require and which cryptocoin they can provide as collateral and lenders choose who they want to provide funds to.
Once agreed, a contract is established on the blockchain and payments are tracked.
At the end of the loan, the repayment is distributed to lenders and the collateral is returned to the borrower.
Read more: Cryptocurrency providers eye P2P lending