Twitter announced that it would indeed be putting up a rather large ban on cryptocurrency advertising. The ban will also include all ads related to cryptocurrency exchanges and wallet services, with a notable exception afforded to publicly listed companies listed on certain major stock markets, Reuters reports.This is in line with Facebook and Google, who did the same previously for similar reasons too.
According to the policy, any advertisement for financial products and services must be compatible with all applicable laws in each country, provide necessary disclosures, balanced information of risks and benefits, and all information that must be provided to the investor. Moreover, the network will now only allow ads by cryptocurrency exchanges and wallet services that are publicly-listed companies on major stock markets, Twitter said. In Japan, virtual currency exchange trading advertisers must be authorized by the Financial Services Agency.
A Twitter spokesperson explained in statements to CNBC:
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency. Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
Twitter’s ban was first reported by Sky News a week ago, suggesting that the ban would come into effect at some point over the next two weeks after Twitter publicly said it was taking measures in preventing crypto-related accounts from “engaging with others in a deceptive manner.” There has been a considerable rise of crypto-related scams on Twitter wherein scammers have also gone so far as hijacking verified Twitter accounts to trick users into parting with their cryptocurrencies.
For the safety of users
Much like Facebook, which stated its banning policy would be “intentionally broad” to begin with, Twitter is taking aim at many business sectors within the cryptocurrency market place: ICOs, exchanges and wallet services are all in their crosshairs.
Just like Google, Twitter’s reasoning for the ban is the protection of its audience from deceptive content.
Google’s director of sustainable ads Scott Spencer said in a blog post that set out to explain the reasoning for the ad ban, after it was announced:
“As consumer trends evolve, as our methods to protect the open web get better, so do online scams. Improving the ads experience across the web, whether that’s removing harmful ads or intrusive ads, will continue to be a top priority for us.”
The problem comes with Twitter taking a broad approach to all cryptocurrency advertising, banning wallets and exchanges too, unless they are listed on certain major stock markets.
There are not many services, legitimate or otherwise, that are listed on stock markets, which makes this blanket ban all the more damaging, but also helps explain its base. As Twitter cannot moderate and determine the validity of all exchanges and wallets, the ban that is has decided to issue has to be an overarching one.