Twitter - the online social media giant, is reportedly preparing to ban cryptocurrency advertisements. The social media platform will follow the likes of Google and Facebook who already have announced bans of cryptocurrency ads on their platforms.
Over the past few weeks, Twitter has been targeted by scammers who pose as famous personalities and influencers to trick followers into sending cryptocurrency in return for a higher payment, which of course never comes. In response, Twitter said it is implementing measures to stop such illicit activities, however, it was unknown how these measures would as actually work.
According to Sky News, the social media giant is planning to disallow a number of cryptocurrency advertisements, if not all, as a result of impending regulatory pressure.
Reportedly, Facebook and Google’s move to ban crypto ads on their platforms was due to pressure from the Federal Bureau of Investigation (FBI) amid rising concern about illicit activities associated within the crypto space. It is unknown if Twitter is also taking steps against cryptocurrency due to regulatory pressure from the FBI or if it's self-motivated.
As per Sky News, Twitter’s new ad policy will initially prohibit ads associated with Initial Coin Offerings (ICOs), cryptocurrency wallets and token sales. Although, the ban isn’t officially announced, according to a source close to Twitter, it might be put into effect within two weeks. For now, the looming ban could also affect ads from digital currency exchanges, however, some exceptions are likely.
Twitter To Follow Facebook And Google
On January 30, 2018, Facebook banned crypto ads or others financial products that mislead users. With regard to the “intentionally broad” ban, Facebook stated:
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith”.
Recently, search engine giant Google also shared similar standpoint as Facebook and announced that it will ban cryptocurrency related ads starting June this year.
Just days before, the Financial Stability Board (FSB) - the international body that monitors the global financial system, said that cryptocurrencies are no threat to the financial stability at the juncture. Mark Carney, FSB Chairman and Governor of Bank of England, wrote in a letter to G20 nations finance minister and central bankers, that the crypto market is “tiny” compared to the regulated financial ecosystem and does not pose any risk to financial stability.
It is uncertain what the extent of Twitter’s ban will be. It is likely to include ICOs and token sale events as a minimum as they have drawn the most notoriety from regulatory over the past year.