Google is set to end its prohibition on cryptocurrency advertising. The search engine giant has updated its policy to allow certain kinds of crypto-related advertising. This move follows a similar reversal from Facebook in June.
Details of the Reversal
According to CNBC, the reversal is part of the company’s recently updated policy document titled: “Update to Financial products and services policy (October 2018).” The update covers the search engine’s stance on crypto-related advertising.
Google originally issued the ban in March but came into effect three months later. At the time, the prohibition was meant to offer protection for customers. The previous ban covered initial coin offerings (ICOs), binary options, trading advisory services, and cryptocurrency wallets.
The ban came as part of a broader security crackdown which identified virtual currency schemes as a clear and present danger to uninformed investors on the internet. Critics have long identified the nascent cryptocurrency industry as a haven for criminal activity.
The New Google Cryptocurrency Ad Policy
The reversal only covers cryptocurrency exchange platforms. Thus, adverts relating to ICOs, wallets, binary options, and trading advisory services are still prohibited. In the new regulatory paradigm, cryptocurrency exchange platforms can advertise in both Japan and the United States.
A portion of the updated policy reads:
Advertisers will need to be certified with Google for the specific country in which their ads will serve. Advertisers will be able to apply for certification once the policy launches in October.
The newly updated policy comes into effect in October. Google plans to update its Financial products and services page once the policy takes effect.
Social Media and Cryptocurrency Advertising
After the stellar performance of the cryptocurrency market in 2017, many social media platforms began to shine the spotlight on the industry. This culminated in a litany of bans as many services sought to prevent the spread of fraudulent investment schemes and misleading advertisements.
In January, Facebook dropped its ban bombshell at a time when Bitcoin was taking a beating. Google soon followed suit with a ban of its own. However, by the middle of the year, Facebook backtracked on its ban, reintroducing cryptocurrency ads.
The initial Google ban coincided with a 10 percent Bitcoin price decline. While the company seems to be relaxing its aversion to virtual currency ads, its app platform continues to combat mining applications, though with limited success.