Google to ban cryptocurrency and related advertisements

Marcus Newton
March 15, 2018

It is also restricting ads that promote binary options and synonymous products. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

Facebook has also banned cryptocurrency adverts.

Google didn't offer a specific reason for its ban on cryptocurrency advertising, but I would assume that its reasons are similar to Facebook and Twitter.

Its new financial services rules, published this week, state that advertising will no longer be permitted to serve content relating to cryptocurrencies, initial coin offerings (ICOs), exchanges, wallets, trading advice and spread betting.

Alphabet Inc., the parent company of Google, announced its decision on Wednesday in an update to policy it has that says it would begin blocking any ads for cryptocurrencies and any related content.

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Facebook, Google's primary rival for ad dollars, banned ads for cryptocurrencies in January.

Cryptocurrencies have exploded in popularity over the previous year thanks to a surge in the price of bitcoin at the end of 2017. The growing popularity of cryptocurrencies and other financial services and products has created conditions for the proliferation of scams, reports from the past several years have shown. The downside is that the "Google certification process" will only be available for advertisers located in "certain countries".

As mentioned above, Google is also planning to block ads for contracts for difference and spread betting, which are known to be financial instruments that allow people to place bets on the movement of various assets. Traders can theorize on share price movements of stocks or metals, without the need for ownership of the underlying shares. Scam artists exist everywhere including highly regulated industries as noted with the Bernie Madoff scandal. This is part of the company's broader crackdown on marketing of new types of financial products with high risk. The FCA found that 82% of people who use the products lose money, suggesting CFDs are more akin to gambling than investing.

However, the ad ban would become applicable from June only.

Google's announcement comes after Christine Lagarde, head of the International Monetary Fund, added her voice to calls for caution and regulation.

Other reports by MaliBehiribAe

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