Earlier this year, Google updated its Financial Products and Services policy to ban all the advertisements associated with cryptocurrency. However, a recent update has instilled hope among crypto enthusiasts. A lift in the ban, which will come into effect from October this year, has been announced by the company.
According to the new update, cryptocurrency exchanges that are regulated in Japan and the USA will be given ad slots, enabling them to appear on Google search results. Some of the popular exchanges on this list include Coinbase and Gemini.
It’s unclear why Google took this 180-degree turn on an earlier policy enacted in June. Cryptocurrencies are still largely unregulated in most countries, even though Japanese regulators seem to have created a guided platform for crypto-based operations in the country.
It is however apparent that Google has decided not to ignore the cryptocurrency ecosystem any longer considering that the bulk of the revenue the tech. giant generates come from ads.
What was the issue about?
Prior to this new regulation, Google, earlier this year announced that it will ban certain ads. These are mainly those that are related to the Initial Coin Offering (ICO), crypto wallets, mining and trading. Cited was the high risk investors are exposed to as well as recurring incidents of fraudulent ICOs.
“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’s Scott Spencer told CNBC after the ban.
Previously, the popular social site Facebook had implemented a similar policy in January. Though this was later relaxed in June when selected companies that were pre-approved could promote their crypto businesses.
Effect of Bans On the Crypto Community
As expected, there were various shades of opinion with regard to the ban. Most ICO projects were mostly dependent on social media platforms such as Facebook and the chat app Telegram for the promotion of their projects. So the ban placed some limitations and restricted the audience that subsequent ICOs had.
Google Statement On New Policy
The parent company of Google, Alphabet, said in a press release that only ads from advertisers certified by Google will be approved. This will apply to specific countries and target audiences. With its upcoming implementation in October, the new policy paves the way for the certification of advertisers.
These are small steps towards embracing the legitimacy of the crypto ecosystem. They do not imply that the challenges of the industry have been swept aside. Many of the issues, such as investor protection, will continue to be at the periphery of a novel industry striving to find its feet.