Google (NASDAQ:GOOGL) announced today that is to reverse part of its ban on cryptocurrency-related advertising starting in October. The tech giant has decided to allow regulated crypto exchanges to purchase advertisements in Japan and the United States.
A total ban on crypto related advertising was implemented in March this year. Previously, Google advertising formed a central part of many ICO marketing strategies in 2017 and early 2018. However, bans by social media giants, Facebook, Twitter and LinkedIn at the start of year followed an increasing number of scam ICOs making the headlines, forcing regulatory bodies and advertising platforms to clamp down.
The Google ban which came into effect at the end of June, is aimed at protecting consumers from what it considers to be high risk investments. The ban included initial coin offerings (ICOs), trading advice, and wallets. Despite the easing of the ban in the United States and Japan, they are all still not allowed to advertise on the Google platform. At the time of the ban, Google’s Scott Spencer said to CNBC:
“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,”
Google (NASDAQ:GOOGL) Catching Up With Facebook
As of next month, Google (NASDAQ:GOOGL) will allow government-registered exchanges from all over the world, advertise in the United States and Japan. As to why Google is ending some of its ad ban now is not entirely clear. However, it appears that Google believes that the wild wild west days of crypto is nearly, with values lower and staying lower. Google seems a bit more relaxed now much of the hype surrounding the crypto and ICO worlds have somewhat died down. King of the social media Facebook lifted its ban on some forms of crypto and blockchain-related ads back in June.
The latest move by Google may be simply be a case of not wanting to lose out on a very lucrative ad revenue stream to its biggest rival, Whether Facebook or Google relax their ad bans on ICOs in the near future looks unlikely. However, as the crypto industry moves forward at a more sustainable pace, there well may be a ICO ad ban review in 2019.