Google, the world’s largest online ad provider, plans to ban cryptocurrency advertising and following suit, the price of Bitcoin fell below $8000. Facebook, the second largest online ad provider, took similar action in January.
Advertising for “cryptocurrencies and related content” will be restricted starting in June, said Google in an update to its Financial services policy.
The social media giant Facebook said it would prohibit ads for financial products and services “that are frequently associated with misleading or deceptive promotional practices.” This ban on “binary options, initial coin offerings and cryptocurrency” was done in January and it prompted the price of Bitcoin to fall by 12 percent.
Brian Kelly, CEO of BKCM, said the crackdown could be an upside for digital currencies despite the negative air surrounding cryptocurrencies regarding the ban. He said, “It’s a good thing for the industry, Facebook and Google ads were always a red flag for me. It’s not having any impact on price.” As per Kelly, the ban got to see the light of day due to global regulatory fears regarding the virtual currency.
A hearing on cryptocurrencies and initial coin offerings is to be held on Wednesday by a House Financial Services subcommittee.
The SEC expanded its scrutiny towards cryptocurrency exchanges, and news of compromised accounts on a major Hong Kong-based exchange Binance resulted in Bitcoin prices dropped from above $11,000 to below $9,000 last week.
Jack Tatar, co-author of “Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond,” pointed to continuing regulatory uncertainty in Wednesday’s price moves.
“We also have the threat and lack of clarity about regulations which is also weighing on the entire cryptoasset space, not just bitcoin,” Tatar said, adding that any break below $8,000 “will be disconcerting.”