Encouraged by country leaders and banks, major advertising companies have been banning cryptocurrency related-ads on their platform due to the uncertainty surrounding scams and illicit activities using crypto. Facebook already implemented its ban, and now Google will ban cryptocurrency ads on its platform, the company announced today. Based on the company press release, this will be effective as of June 2018. This is big news for cryptocurrencies everywhere.
Google, makes almost 84% of its total revenue from ads, so its announcement to ban any advertising regarding initial coin offerings (ICOs), trading advice and wallets, is weighted.
Along with cryptocurrency, Google will not accept ads from for the following:
Contracts for Difference
Rolling spot forex
Financial spread betting
Binary options and synonymous products
Google has said: “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,”
Advertisers offering rolling spot forex, contracts for difference, and financial spread betting now must have certification from Google to place their ads through AdWords.
Things Aren’t Going In Favor of Bulls
The denouncement of ads from major Ad-hosting services isn’t a good sign for future cryptocurrency prices. The virtual currency is already struggling to sustain trader’s interest and the trading volume is reflecting this. Google searches for Bitcoin (available on Coinbase) decreased 80% to its lowest level in the last five months, while trading volume has declined at a robust in the last two months.
Regulators becoming more involved in crypto markets has the potential to enhance confidence in cryptocurrencies in the long-run, however, the short-term impact of this on trading volume might be another red flag for digital currency investors. Bitcoin (available on Coinbase) (BTC) and other digital currencies extended the downtrend in today’s trading – BTC dipped at a mid-single digit rate today to below the $9,000 level.
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