Google Bans Cryptocurrency Ads, Bitcoin Price Falls

A few hours back Google confirmed it is banning advertisements for cryptocurrencies and initial coin offerings, the latest internet company to clamp down on the sector in the midst of growing concerns about scams.

Google's action, which takes effect in June and follows a similar move by Facebook earlier this year, sent the price of the best-known cryptocurrency, bitcoin, down more than 10 percent to its lowest in a month.

Interest in cryptocurrencies has surged in the last year as their prices rocketed with mostly youngsters finding great fascination in trading the cryptocurrencies.

Global crypto experts believe that growth has spawned online advertising used by hundreds of companies trying to raise funds by launching new coins or encouraging people to trade the virtual currencies.

According to Scott Spencer, director of sustainable ads at Google, "Improving the ads experience across the web, whether that's removing harmful ads or intrusive ads, will continue to be a top priority for us," as stated on the company's official blog, The Keyword.

Under the new policy, Google said it would ban advertisements for cryptocurrencies and related content such as

1. initial coin offerings,

2. crypto exchanges,

3. cryptocurrency wallets,

4. advertisements providing trading advice

In January, Facebook Inc said it would ban advertisements promoting financial products and services tied to cryptocurrencies and initial coin offerings because of the risks to users.

Regulators across the globe have warned consumers about the risks of investing in crypto markets, but internet companies are introducing outright bans because they worry currently there is lack of sufficient protection for consumers.

"If an entity such as Google does not feel comfortable with exposure to these cryptocurrencies then it is right that they don't promote it," said Chris Keshian, chief executive of $APEX Token Fund, which invests in cryptocurrency fund managers.

The CEO of the UK arm of Coinbase, one of the largest bitcoin exchanges, said Google's decision was a positive development that would not dampen demand, although he viewed the ban as too widespread.

"The Google ban is perhaps too broad as it is. It should be narrowed down" to companies that pitch cryptocurrencies as investments promising a return, Zeeshan Feroz told Reuters.
The price of bitcoin traded on the Luxembourg-based Bitstamp exchange fell almost 10 percent to $8,201, the lowest since Feb. 12. It was last down 8.7 percent at $8,337.51

Other large cryptocurrencies also are falling at a high rate. Bitcoin has lost about 40 percent of its value in 2018 after rocketing more than 1,300 percent last year.

Google has also been categorical in mentioning that it would stop advertisements for financial products like binary options and synonymous products, contracts for difference, rolling spot forex and financial spread betting. Companies wanting to promote those products would need to be registered with the relevant financial regulators before they could advertise again.

In a separate blog post, Google said it took down 3.2 billion advertisements that violated its advertising policies in 2017, nearly double the number of ads it removed in 2016. Interesting developments expected as we approach end of quarter.