Google, the Silicon Valley-based firm now worth $828 billion, has announced it will lift its ban on crypto-related advertisements, opening the door for regulated companies to advertise their products on Google’s platform.
Scott Spencer, a Google executive, announced in March that what led the company to ban crypto ads was the potential for them to disrupt financial markets. He stated:
“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 removal of its ban on cryptocurrency-related ads demonstrates its readiness to work with genuine projects and businesses in the crypto sector.
Why reverse the ban?
Back in June, Philip Nunn, CEO of Manchester-based investment firm Blackmore Group, voiced his criticism regarding Google’s blanket ban on the entire crypto industry.
The CEO mentioned that Facebook and Google had both displayed curiosity towards the crypto industry and the underlying blockchain technology, but had decided to ban the entire market from their platforms regardless. Mr Nunn then went on to say:
“I understand that Facebook and Google are under a lot of pressure to regulate what their users are reading, but they are still advertising gambling websites and other unethical practices”
Ed Cooper, Head of Mobile at the multi-billion dollar fintech company Revolut, also voiced his concerns with regard to the ban, as it unjustly penalised legitimate businesses endeavouring to build platforms and services for market investors.
The criticism arrived as Google and Facebook intended to ban crypto-related scams and Ponzi schemes. However, in the efforts of the tech giants, companies such as Coinbase and Binance were caught out, leaving them unable to purchase ad space on the platforms.
“Unfortunately, the fact that this ban is a blanket ban will mean that legitimate cryptocurrency businesses which provide valuable services to users will be unfairly caught in the crossfire”, Philip Nunn said.
Ethereum’s co-creator, Vitalik Buterin, had previously explained that cryptocurrencies and blockchain technology have both already achieved a high level of awareness in the public eye. However, given the early stage that the industry is in, having a robust infrastructure is essential to permit cryptocurrencies and other digital assets to flourish.
The major concern with the blanket ban is its stifling effect on the potential for recognised and prominent companies in the crypto sector to expand their services, reach, and user bases. The reversal of the embargo from Google will allow the crypto market to once again build confidence with individual and institutional investors.
From October, verified companies within the crypto sector in the United States and Japan will be permitted to buy ad space on Google’s platform. However, companies will be allowed to submit applications with google to publish their advertisements globally, which will inevitably evolve into a reversal on the ban on crypto ads.
Google’s move to approve crypto and blockchain related ads manually is very positive, particularly for the sake of investor protection. It will help filter out illicit services and scams, that could have negative repercussions on both the cryptocurrency industry and Google.