Twitter Joins the Parade to Ban Crypto Ads
Twitter is set to become the next major platform to ban cryptocurrency-related advertising amid widespread concerns of regulatory intervention in the sector. The report, which was originally published by Sky News, suggests the ban will take effect in as little as two weeks.
Ban on Crypto Ads
The proposed ban extends far beyond cryptocurrency to include initial coin offerings (ICOs) and digital currency wallets. Crypto exchanges may be permitted to buy ads with some exception, according to the report.
If the report is true, Twitter wouldn’t be the first digital platform to ban crypto ads. Last week, Google announced it would pull the plug on the industry’s marketing efforts at the start of Q3. Google’s ban also includes other financial activities, such as contracts for difference and binary options.
Google director of sustainable ads Scott Spencer told CNBC last week that the company doesn’t “have a crypto ball to know where the future is going to go with cryptocurrencies,” but that it has “seen enough consumer harm or the potential for consumer harm that it’s an area that we want to approach with extreme caution.”
In January, Facebook announced plans to prohibit financial ads that promote “misleading or deceptive promotional activities.”
Crypto Regulation Takes Center Stage at G20
Cryptocurrencies will be a hot-button topic at the Group of 20 summit in Buenos Aires this week. Officials from Japan, Germany and France are expected to lead the discussion on regulation, with prior reports indicating that the two European countries were developing a joint proposal on governing digital assets.
While policymakers can no longer ignore the crypto market, the prospect of a universal agreement on regulation remains slim to none. Citing an official involved with the G20, Reuters reported last week that discussions are likely to focus on anti-money laundering steps and consumer protection rather than how the digital asset class could impact the financial system.
The G20’s Financial Stability Board Chairman Mark Carney issued a statement over the weekend that cryptocurrencies do not pose a threat to the financial system given their relatively small size. However, he also acknowledged that wider use of crypto assets could lead to more acute risks in the future.
As Bank of England Governor, Carney has called on regulators to put an end to crypto “anarchy,” arguing that digital assets should be governed by existing financial rules.
Although the regulatory climate facing cryptocurrency remains rocky, U.S. President Donald Trump recently set the tone for scaling back regulation in the financial sector. The current Republican administration would much rather relax post-crisis reforms than adopt more stringent measures that could restrict new business from being generated. This seems to align with a global trend away from creating new digital currency rules to examining existing regulation.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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