The prospect of regulation in cryptocurrency ecosystems around the world is making tech behemoths reconsider their bans on advertising for crypto-related products.
Alphabet Inc. subsidiary Google (GOOGL), which had banned cryptocurrency ads from its platforms, partially lifted it this week. In a blog post announcing a revision to its ads policy, the company stated that it would allow regulated cryptocurrency exchanges to advertise on its platform in Japan and the United States, starting in October. "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 company stated.
The Mountain View, California company had instituted the ban in March to curb “unregulated or speculative financial products”. “As consumer trends evolve, as our methods to protect the open web get better, so do online scams,” it stated earlier when announcing the ban. (See also: Google Bans Crypto Mining Extensions).
Google is the second tech behemoth to backtrack on its ad policy regarding cryptocurrencies. In June, social media giant Facebook Inc. (FB) announced a screening process for listing initial coin offerings (ICOs) after previously banning ads for ICOs completely. (See also: Facebook Partially Lifts Ban On ICO Ads).
A Movement Towards Regulation Of Cryptocurrency Exchanges
Google’s announcement is in line with current regulation-related developments in cryptocurrencies.
Japan is an epicenter for cryptocurrency trading and accounts for the highest number of trades in crypto markets. The country’s Financial Services Commission (FSC) has started active policing of cryptocurrency exchanges and nudged them towards forming a self-regulatory body within the country. (See also: Bitcoin Gets Boost From Japan).
The movement to regulate cryptocurrencies is also growing within the United States. San Francisco-based Coinbase, North America’s largest cryptocurrency exchange, has applied to the SEC to become a regulated brokerage. The regulator has already cracked down on suspect cases of fraud within the crypto community and provided clarity regarding the status of bitcoin and ethereum. Separately, venture capitalists, entrepreneurs and prominent advocates within the crypto community have been clamoring the CFTC and SEC to regulate cryptocurrencies. While Google’s previous ban-related announcement resulted in a 5% decline in the price of bitcoin that day, the company’s stance reversal failed to stem the decline in cryptocurrency markets this time around. (See also: Bitcoin Price Spirals Towards $8,000 After Google Bans Crypto Ads).
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