Google Bans all Cryptocurrency-related Ads
This Wednesday, March 14, Bitcoin saw a steep fall in its price right after Google announced that it was permanently banning all advertisement related to cryptocurrencies. The search engine giant now follows Facebook’s move in which the company banned all cryptocurrency ads.
Facebook announced in a blog post:
“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.”
Similar to the social media giant, apart from cryptocurrencies, Google said it was also banning binary options as it considered this sort of promotion to be a vehicle to fraud and extortion, and many jurisdictions already prohibit them.
As of June, the ban will take effect and Google will no longer display any promotion or advertisement related to cryptocurrencies. The ban not only applies to ads, but also to Initial Coin Offerings (ICOs) and many other cryptocurrency businesses including exchanges and firms offering financial advice on cryptocurrency trading.
Pressure from the FBI and regulatory agencies
A week ago, the Securities and Exchange Commission cautioned that numerous digital currency trades are working outside the law. Specialists have asserted that some cryptocurrency offerings are altogether fake, while numerous others are simply based on very unsafe speculation.
On February 6, Jason Roy, a senior investigator at the Manitoba Securities Commission and chairman of Canada’s Binary Options Task Force, in an interview with Times of Israel, revealed that the FBI and Canadian securities regulators have been putting pressure on Google and Facebook to make them ban these types of advertisements. Roy said the matter has been in discussion for months and up until only Facebook was able to adopt new measures.
Roy told the Times of Israel:
“What happened is that Canada’s Binary Options Task Force, as well as the FBI, explained to Facebook what the concerns were and that these types of ads are leading to people becoming victims. We’ve been talking to Google and had similar discussions and are waiting for them to take similar action.”
These pressures appear to have been the primary cause leading to Facebook’s decision, however, Roy stressed that the company freely took the decision rather than being pressured to accept the terms.
Cryptocurrency prices going down
Whether the announcement is actually having a negative effect on cryptocurrency prices or not, the fact is that the markets are going down since the announcement was first released. According to CoinMarketCap, Bitcoin has dropped more than 8 percent during the last 24 hours, and many other major cryptocurrency platforms such as Ethereum, Monero, Ripple, and Litecoin have also followed the falling trend.