Google is the latest internet giant to make a U-turn by overturning an advertising ban on cryptocurrency exchanges.
The search goliath joined Facebook and Twitter earlier in the year with a blanket ban on cryptocurrency advertising.
The online corporations were concerned that unscrupulous crooks were ripping off users with scam initial coin offerings (ICOs) and bogus electronic wallets.
Facebook reversed the advertising policy a few weeks ago by allowing vetted cryptocurrency exchanges to post marketing material on the social media network.
Now, Google has joined them by allowing some cryptocurrency exchanges to advertise in the US and Japan. Some suggest the move is to stop Facebook sweeping up advertising revenues.
Internet giants reverse ad bans
The corporation will update advertising policies from October 2018 to permit regulated cryptocurrency exchanges to post marketing messages.
However, the exchanges must have a certification from Google showing that their businesses are:
- Licensed by financial services authority in the places where they are trading
- Complying with all Google Ads policies
- Complying with all legal requirements in the countries where they are trading
“The Google Ads policy on financial products and services will be updated in October 2018 to allow regulated cryptocurrency exchanges to advertise in the United States and Japan,” said a Google spokesman.
“Advertisers will need to be certified with Google for the specific country in which their ads will serve. Advertisers will be able to apply for certification once the policy launches in October. The Google ban was announced in March, following a similar move by Facebook in January.
The Facebook ban was lifted for regulated exchanges in June. Both sites will continue to block advertising for ICOs, contracts for difference, rolling spot forex, financial spread betting, binary options and similar products.
55% of ICOs fail
Data quoted by cryptocurrency monitor ICOrating suggests 55% of ICOs failed in the second quarter of 2018 and many suffered huge losses that were passed on to investors – the failure rate was 5% up on the first three months of the year.
In addition, 53% of all decentralised applications (DApps) were unsuccessful.
Most were based on tokens rather than cryptocurrency coins.
So far in 2018, ICOs have collected $20 billion from 789 projects.