Recently, major social media sites, including Twitter, Facebook, and Instagram have banned ICOs (Initial Coin Offerings) and cryptocurrency advertisements, whereas Google is going to introduce the same regulations from June 2018. The series of bans have damaged the crypto-market, certainly. However, few experts claim that the restriction might lead to the industry’s legitimization.
Ban on Cryptocurrency Advertisements
Facebook announced it in a blog post, on 3rd January, that it will be banning advertisements that use deceptive promotional techniques, specifically mentioning the cryptocurrencies as well as ICOs.
Certainly, this move by Facebook seemed to agree with the US SEC’s (Securities and Exchange Commission) public announcement about the crypto-related investments and ICO. In the statement, Jay Clayton (SEC chairman) advised that the trend of deception and manipulation is growing day-by-day in the ICO and cryptocurrency markets due to their mounting popularity. However, Clayton also alerted investors that no ICOs were registered with the SEC.
Soon after the reports from crypto advertisers related to the suspensions and account deletion of Adwords started to circulate, on 14th March, the company announced that all crypto-related advertisements will be banned by it, no matter whether they are wallets, exchanges, and ICOs. Google also announced that it will pull the crypto-mining extensions from its Chrome Web Store as well.
The rumours about twitter banning all crypto-related advertisements were confirmed on 26th March as the social media giant twitter banned advertising only for ICOs and token sales. According to the policy, the ban was imposed on wallet services and cryptocurrency exchanges, unless they are public firms or are registered on major stock exchanges.
A report related to Snap Inc. (the company behind Snapchat) was also confirmed that since February, the company has been silently banning ads for token sales, however, its future plans related to rest of the cryptocurrency ads are unclear.
Did the Bans Affect Cryptocurrency Market?
- After the announcement of Facebook about crypto-related bans, Bitcoin collapsed from $10,000 mark to $6,914 however, it managed to come back.
- When Google announced its plans to ban crypto and ICO ads, the price of Bitcoin dropped below $8,000and loss 9% of its value.
After Twitter’s announcement to ban crypto-related ads, Bitcoin fell below $7500 on March 29, which shows that the bans have affected the overall cryptocurrency market.