Twitter Inc has announced that it will start banning digital currency advertising effective Tuesday. This is according to a report by Reuters on March 26.
The social media company has confirmed the rumors that have been going around that would follow Google and Facebook clamping down on crypto-related advertising.
In a statement, Twitter told Reuters that the ban on will cover all advertising for Initial Coin Offerings (ICO) as well as token sales. The new policy will be unveiled in the course of the coming 30 days and will include bans on cryptocurrency wallet and exchanges services. This ban will however exempt public companies which are listed on major stock exchanges but engaging in digital currency business. Twitter announced that it will start limiting advertisement for digital currency exchanges in Japan to only those under the purview of the country’s financial regulator.
In taking this move, Twitter has cited safety for its users as the main motivator behind the ban. The social media giant was already taking the necessary measures to prevent crypto-related Twitter accounts from “engaging with others in a deceptive manner”, but has been facing calls and pressure to enact further measures after bans from Facebook and Google.
Digital currency markets, which were already reporting a slip on Monday, went down even further after the announcement from Twitter.
While talking to Reuters, Zennon Kapron director of Kapronasia, a financial consultancy cited risks to twitter itself as one of the major motivator behind the ban. He said that with the raising number of ICOs on the market, it is very difficult for anyone, leave alone large platforms like Facebook and Twitter to keep watch of the genuine cryptocurrencies and ICOs against the frauds. He added that although adverts from ICOs may have a big source of revenue for the company, the results of fraudulent activities were a big risk.
Earlier, Facebook announced a move to restrict crypto-related advertising. On the other hand while Google announced a ban earlier in March this year that will be enacted in June 2018. The ban is definitely big blow to the digital currency sector which, despite taking the world by storm, is still facing several regulatory hurdles in several countries.