After Facebook & Google, Twitter to ban cryptocurrency ads

After Facebook and Google banned ads related to virtual currencies on their platforms, micro blogging site Twitter is preparing to prohibit ads for initial coin offerings (ICOs), token sales, and cryptocurrency wallets globally.

According to Sky News, the new advertisement policy will be implemented in two weeks. Besides, Twitter may also ban ads for cryptocurrency exchanges, with some limited exceptions, when the policy is launched.

Last week, Google announced it would no longer show ads related to cryptocurrencies like bitcoin.

In late January, Facebook in a blog post announced that it will ban any ads related to virtual currencies as misleading or deceptive ads have no place on the social networking site. The company declared its aim was to provide genuine advertising on its platform and save people from falling to scams.

Both Facebook and Google also banned ads for binary options trading following the release of figures from Action Fraud that showed victims' losses in Britain have risen by 400,000% in six years.

Early this month, the Bank of England warned that bitcoin faces a regulatory crackdown, warning that “inherently risky” cryptocurrencies are failing to fulfil their most basic function as money.

The world’s largest cryptocurrency trader South Korea last year also banned its financial institutions in dealing with virtual currency such as bitcoin, litecoin, IOTA and others.

Cryptocurrency has been facing flaks across the segments. Last month, Goldman Sachs again cautioned investors against the fall in value of cryptocurrencies.  

In a report, Goldman’s Steve Strongin said most digital currencies are facing a threat from a small set of future competitors, and investors should prepare for coins to lose all their value.

He believed the tendency for different tokens to move in lockstep wasn’t rational for a “few-winners-take-most” market.

India thinks alike

Indian government also keeps a strong stance against cryptocurrency.

In February, Finance Minister Arun Jaitley in his budget speech mentioned cryptocurrency and said the government does not recognise cryptocurrency as legal tender or coin. It will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.

Late last year,  the government asked consumers to be alert before investing in virtual currency like Bitcoin and compared it with notorious Ponzi schemes.