Is Twitter set to ban crypto ads? Following the lead of social media giants like Facebook and Google, Twitter is reportedly planning to follow suit. While aimed at protecting users from cryptocurrency scams, the blanket bans also prevent thousands of legitimate businesses from advertising their services, and could harm the industry.
Twitter and Crypto Haven’t Gotten Along
The popular social media outlet has had a difficult past few weeks. Recently, it announced it would ban cryptocurrency profiles because of the proliferation of “scam bot impersonators.” This ultimately resulted in other problems, such as real figures rather than impersonators having their accounts shut down instead. A number of Twitter users sought to create their own bots to battle Twitter’s ongoing offensive.
Twitter apparently figured getting rid of cryptocurrency from its platform altogether should set things straight and prevent further issues. The microblogging company says it is very concerned about “illicit activities,” and that users should expect these changes within two weeks.
Twitter also said that it is looking at potentially banning ads for cryptocurrency exchanges, though there will likely be exceptions to the rule once full policies take effect.
With Twitter Set to Ban Crypto Ads, an All-Too-Familiar Pattern Emerges
Twitter’s plans to ban cryptocurrency ads is in line with similar actions taken by several major online players. Facebook started the trend last January, when executives claimed they would prohibit ads that promoted “financial products and services which are frequently associated with misleading or deceptive promotional activities.” This included ICOs and new token sales. Bitcoin’s price fell nearly ten percent following the announcement.
Only last Wednesday, Google followed in Facebook’s footsteps by announcing that its advertisements of cryptocurrencies and ICOs would cease permanently this coming June. The bitcoin price fell by over $1,000 USD to $8,200 after trading at roughly $9,500 the previous week. With Twitter set to ban crypto ads, bitcoin could face similarly bearish moves.
Is Regulation Inevitable?
Additionally, digital currency was a widely speculated topic at the recent G20 meeting. One of the attendees, Bank of England governor Mark Carney, warned that cryptocurrency regulation was imminent, as illegal activities had become too prevalent:
“There are a number of problems with cryptocurrencies. They are small now, but they are getting bigger… There are issues for authorities who deal with money laundering, terrorist financing and price fixing. There have been several incidents of theft – not just big crimes, but also steady thefts from people’s wallets. The operational standards of these currencies are nowhere near where they need to be.”
The thefts Carney referenced were reported by the agency Action Fraud, suggesting that in the past six years, victims’ losses in the U.K. expanded by more than 400,000 percent.
Is Twitter making a mistake by banning crypto ads? Post your comments below.
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