• On March 23, the US House Energy and Commerce Committee held a hearing in Washington to question TikTok CEO Shou Chew over suspicions that the Chinese government is gathering user data through the app.
• U.S.-based think tank Coin Center believes that the potential effects on the crypto space cannot be ignored as a ban on TikTok may have several implications for the crypto space.
• Bitcoin YouTuber CryptoWendyO also thinks that this bill is not about TikTok but about going after the crypto space itself, claiming “Yes, your bitcoin, crypto and NFTs. Banning them is the goal.”
Background of TikTok Ban
On March 23, United States lawmakers questioned TikTok CEO Shou Chew at a House Energy and Commerce Committee hearing in Washington. In the hearing, lawmakers grilled the CEO over suspicions that the Chinese government is gathering user data through the app. The intensity of the exchanges went viral online, with many believing that a ban — exemplified in the Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act recently introduced in United States Senate — may be imminent.
Implications for Crypto Space
While TikTok is not a crypto-native app, it’s used by many crypto community members to access crypto-related content. This means a ban has several implications for the crypto space; U.S.-based think tank Coin Center believes that this could be used to prohibit U.S citizens from transacting with sanctioned entities under International Emergency Economic Powers Act authority; Austin Federa, head of strategy at Solana Foundation also expressed concerns regarding politicians’ ability to publish and distribute software some politicians don’t like which is protected under first amendment law; Bitcoin YouTuber CryptoWendyO believes “Yes, your bitcoin, crypto and NFTs. Banning them is their goal”
History of Restrictions
There have been many instances where governments have imposed restrictions on certain applications or services due to security reasons or political reasons; some examples include China banning WhatsApp in 2017 as well as restrictions imposed by UK Government on Google & Facebook services back in 2019 among others. It seems like these restrictions are becoming more common place these days as governments aim to protect its citizens from any potential harm caused by foreign adversaries or malicious actors using such applications/services for nefarious purposes.
Impact On Crypto Adoption
The potential impact of a possible ban on Tiktok on cryptocurrency adoption remains unclear at this point given there are no clear details yet regarding what type of restrictions would be put in place if such ban goes ahead; however it could potentially mean less exposure for cryptocurrencies amongst younger generations who use platforms like Tiktok extensively thus reducing overall adoption rate if people are discouraged from using such platform due to fear of being targeted by authorities or having their data compromised etc .
A possible ban on Tiktok could have far reaching implications for cryptocurrency industry given its growing popularity amongst younger generations; however it remains too early to tell what type of restrictions will be implemented if such ban goes ahead as well as how much effect it will have on overall adoption rate until further details become available .