BusinessTech

Google cracks down on Cryptocurrency

Google’s move mirrors one made by Facebook in January

Google is finally cracking down on cryptocurrency-related advertising starting from June a move similar to the one Facebook made earlier this year. The company will no longer allow ads about cryptocurrency-related content, including initial coin offerings (ICOs), wallets, and trading advice across any of its ad platforms. The move comes amid increased scrutiny of the fast-growing market for digital currencies like bitcoin whose value briefly fell below $8,000 after the announcement.

“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” Ads Scott Spencer

In a blog post on the company’s website, Google’s Director of Sustainable Ads Scott Spencer cited the “unregulated” and “speculative” nature of many of the financial products being advertised. Spencer mentioned cryptocurrency advertisements as an example of “new threats” to the Google user experience, along with ads for addiction treatment centers and online gambling services.

This news comes as Google releases its annual “trust and safety” ads report. In which the Internet Giant said it took down more than 3.2 billion ads in 2017 that violated its policies, which is nearly double the 1.7 billion it removed the year before.

Alphabet, Googles’ parent company makes roughly 84 percent of its total revenue from advertising, so convincing advertisers that its ecosystem is safe and effective is critically important. Some analysts say the bans could be a good thing for the industry over the long term and blame price moves on continuing regulatory uncertainty

Despite the news on Wednesday, Brian Kelly, CEO of BKCM, said the crackdown could be an upside for digital currencies. “It’s a good thing for the industry, Facebook and Google ads were always a red flag for me,” Kelly said. “It’s not having any impact on price” while he attributed the downward moves to more global regulatory fears.

“Selling is driven by fear of another China ban, supposedly coming in next 24 hours.  My view is it will be a nothing burger since China has been banning bitcoin since 2013.”Brian Kelly – CEO, BKCM

 

Bitcoin and other cryptocurrencies are notoriously volatile and governments are also clamping down on the digital tokens. India has said it doesn’t consider Bitcoin to be legal tenderChina is increasingly cracking down on digital currencies, while Korea is planning a bill to ban all domestic cryptocurrency trading.

Will this be the beginning to an end of cryptocurrency takeover? Well, let’s wait and see

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