Twitter Putting An End To Cryptocurrency-related Ads
On Sunday, March 18 Sky News reported that Twitter is preparing to ban all cryptocurrency-related advertising.
The online news and social networking service has decided to ban crypto ads after both Facebook and Google chose to ban them. Apart from cryptocurrency-related ads, Facebook and Google also banned binary options advertising.
The two internet giants agree that cryptocurrency-based ads can easily mislead investors and often facilitates fraud attempts. This, and pressure from the FBI and regulatory agencies seems to have influenced the Twitter’s decision.
The social platform ban will not only apply to cryptocurrency related ads but also includes ICOs, token sales, digital currency wallets and cryptocurrency trading support services. Notably, reports indicate that Twitter still hasn’t come forward to comment on the announcement, but the ban implementation is supposed to occur in about two weeks’ time. Notably, there might possibly be some limited exceptions, once the policy is released.
From last year on, Twitter has experienced a dramatic increase of fake accounts that are used to advertise cryptocurrency businesses, giveaways, ICOs, and many other projects in the sector. These accounts are often used by individuals trying to impersonate well-known members of the crypto world community such as Roger Ver.
Regulation On The Horizon
The cryptocurrency industry is now going through a regulatory “crackdown”, which is having serious consequences on the development of the technology.
Despite a recently released report by the Joint Economic Committee Congress of the United States suggesting that the government should look closely into the potential of the blockchain technology, governments worldwide have heightened their scrutiny of the cryptocurrency sector. Regulation is coming its way and it may well become a real hindrance to the development of the industry itself.
While governments are already looking closely into this technology, they are still looking to it with apprehension and seem to be weighing in more heavily on the cons. Moreover, to be able to find a proper regulatory framework that would perfectly suit the cryptocurrency industry, both the pros and cons needs to be considered.
According to prestigious British News Agency, Mark Carney, the Bank of England’s Governor, warned that cryptocurrencies have a regulatory crackdown coming their way. He stated that, sooner or later, this day would come because there is a need to “regulate elements of the crypto-asset ecosystem to combat illicit activities”. He further noted that the consumers needed to be protected, and there was urgency in finding the suitable regulation for this new industry.
“There are a number of problems with cryptocurrencies. They are small now but they are getting bigger. The Financial Policy Committee is looking at the risks to financial stability. There are issues for authorities who deal with money laundering, terrorist financing and price fixing. There have been a number of incidents of theft – not just big crimes but also steady thefts from people’s wallets.”
After Facebook in January and Google last week moving towards banning crypto ads, it is now Twitter’s turn to prohibit all cryptocurrency-based advertising. Following Google’s announcement, the markets reacted negatively. As for Twitter’s announcement, it doesn’t seem to have had the same impact.