On Wednesday, March 14th, Google confirmed that it was aligning with Facebook’s lead regarding cryptocurrency advertising by banning all advertisements on its advertising platforms and search results (Wilkes, 2018). This ban includes cryptocurrency products such as cryptocurrencies themselves, initial coin offerings, crypto exchanges, cryptocurrency wallets, and ads giving crypto trading advice (Wilkes, 2018). Over the last year cryptocurrency coins, such as the popular Bitcoin, have dramatically gained in popularity and their stock prices have mirrored these increases. As a result, several hundred firms have created new coins and advertised them in various online channels to raise funds for their coins.
But given that the cryptocurrency market is so violate and a number of scams have been reported, the risk to consumers is high and this is the reason why firms such as Facebook and Google have made these bans. CNBC reported this past week that cryptocurrency thieves stole over $2 million dollars in cryptocurrency after offering a fake initial coin offering (Kharpal, 2018). Since the creation of cryptocurrencies, financial regulators everywhere have communicated the investment risks posed by these products. But no legislation has been passed to put restrictions on th
ese financial products, so internet firms such as Google and Facebook have taken it upon themselves to ban advertising for these products altogether to protect consumers from any potentially deceptive content. The Google ban is set to take place in June of this year and so far, both ban announcements have had a negative impact on cryptocurrency stocks (Wilkes, 2018).
The CEO of one of the biggest firms effected by this ban, Zeeshan Feroz of Coinbase UK, feels that the Google ban is too widespread and it should focus only on firms that promise consumers a return on their investment (Wilkes, 2018). Although Feroz feels the bans ultimately will have little to no effect on consumer demand for cryptocurrency products, multiple coin stocks have fell as much as 10% over the last several weeks (Wilkes, 2018). With that being said, some stakeholders within the cryptocurrency industry believe these bans will actually help firms and financial products such as Bitcoin because it wo
uld help them take a step towards mainstream consumers viewing them as legitimate assets (Fontana, 2018). The bans will essentially get rid of scammers and people that are only looking to get rich quickly (Mourdoukoutas, 2018). Additionally, Mourdoukoutas (2018) believes that the major cryptocurrencies such as Bitcoin, Ethereum, Ripple and Litecoin don’t even need to advertise because they are already so well known by the investment community. While all initial indications point towards no short-term resolution for firms effected by these bans, Google has indicated that the firms would be allowed to advertise their cryptocurrency products if they were to register with the appropriate financial regulators.
Since cryptocurrencies in the United States don’t have any government ties and there is no regulation for the currency, should consumers have to rely upon firms like Google and Facebook to be the moral compass we need, ensuring cryptocurrency firms don’t take advantage of us until the government passes regulation legislation? Or should it be upon consumers to educate themselves and figure out if they’re being taken advantage of? There is a place for thoughtful cryptocurrency regulation given that there will always be people figuring out new ways to take advantage of others. Some might argue that these bans are a form of censorship and an outright is the easy way out. While that may be true to an extent, I’m sure Google and Facebook are playing it safe to protect themselves from being on the wrong side of a class action lawsuit or 
public criticism. I’d imagine that if there’s complete transparency regarding why such bans are being implemented, then the potential for bans such as these turning into a slippery slope where firms such as Google and Facebook are outright banning advertisements on their platforms due to competitive threats would remain low.
References
Fontana, F. (2018, March 16). Google and Facebook Banning Cryptocurrency Ads May Actually Be Good for Bitcoin. Retrieved from: https://www.thestreet.com/story/14525560/1/google-facebook-ban-cryptocurrency-ads-may-be-good-for-bitcoin.html
Kharpal, A. (2018, March 15). Over $60 Billion wiped off value of cryptocurrencies in 24 hours as bitcoin slide continues. Retrieved from: https://www.cnbc.com/2018/03/15/bitcoin-price-over-60-billion-wiped-off-value-of-cryptocurrencies.html
Mourdoukoutas, P. (2018, March 15). Google’s Advertisement Ban Is Bullish, Not Bearish, For Bitcoin, Ripple, Ethereum, And Litecoin. Retrieved from: https://www.forbes.com/sites/panosmourdoukoutas/2018/03/15/googles-advertisement-ban-is-bullish-not-bearish-for-bitcoin-ripple-ethereum-and-litecoin/#ace2b9016d3f
Sommerlad, J. (2018, March 15). Bitcoin and Rival Cryptocurrencies All Lose Value After Google Bans Advertising. Retrieved from: https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-price-latest-cryptocurrency-value-decreases-falls-slump-ethereum-litecoin-google-heist-a8256991.html
Wilkes, T. (2018, March 13). Google bans cryptocurrency advertising, bitcoin price slumps. Retrieved from: https://www.reuters.com/article/us-crypto-currencies-google/google-bans-cryptocurrency-advertising-bitcoin-price-slumps-idUSKCN1GQ0GD