Regulators are yet to frame advertising rules on cryptocurrencies, leaving companies to decide their own policies
A growing number of internet companies are banning cryptocurrency advertising, fearing reputational damage if their users are duped or left penniless, even as regulators struggle to get to grips with the fast-emerging industry.
Twitter on Tuesday began blocking crypto ads, becoming the latest internet giant to take action after moves by Google and Facebook earlier this year.
Last week, the G20 failed to agree on specific regulatory action. So companies are taking matters into their own hands.“If internet companies were not already under pressure from regulators for their lose control of data privacy, they probably would not ban advertising from cryptos, which are still a grey area for many regulators,” says Arnaud Masset, a crypto-currency analyst at Swissquote bank.
In February, Snapchat started removing adverts for ICOs – which regulators say lack transparency and are susceptible to fraud.The company declined to comment on whether it would widen the ban to include individual cryptocurrencies, crypto-wallets and unregistered exchanges, as other technology giants have done.
LinkedIn is blocking crypto-related ads, a spokesman said, although owner Microsoft does allow adverts on its other platforms.
Across Asia, where the crypto frenzy is at its most feverish, firms are also restricting advertising.
China outlawed cryptocurrency exchanges and ICOs last year. Chinese internet titans Baidu, Tencent, and Weibo followed suit by curbing ads shortly after.
While Japan’s government and regulators have embraced cryptocurrencies as a phenomenon that is here to stay, the sentiment was hit by a $530m (£376M) cyber heist of an exchange in January.