Microsoft is the latest to join top digital companies in banning Cryptocurrency adverts. The company says that it will no longer host crypto ads or any products related to the same. The ban also extends to unregulated binary options. This move is similar to what Google and Facebook did earlier in the year.
The news appeared first in a short post on the Bing Ads blog. Although the ban does not take immediate effect, the announcement is more of a preparation for advert placers of the coming storm. The blog mentions the beginning of June as the month for the change in the policy with the full ban taking effect end of June or early July.
Reason For The Ban
According to Melissa Alsoszatai Patheo, the advertiser policy manager, she and her team find that crypto and related products are not regulated. Therefore, being the company’s obligation to protect users from possible risks, the ban was inevitable to protect users from potential bad actors who disguise in crypto and related products and scheme scams to predate unsuspecting users.
What’s Banned And What’s Not
The proposed policy seeks not to condone virtual currencies with an aim of facilitating illegal purposes such as avoiding tax, promotion of fake Cryptocurrencies and money laundering. Virtual currencies, being accused of the same before, is therefore safe to assume the ban will affect all Cryptocurrencies
However, the announcement does not solely affect crypto related products. In fact, the ban mentions all legally questionable business opportunities and it seems virtual currency has been added to the same category.
The list also included Pyramid schemes, Ponzi schemes or any other investment that depend solely on adding participants or where subscription fee is required from the consumer or consumer is required to buy a specific product to join while the value of doing so is undefined.
The ban further describes other instances where a ban would take effect. In the second example, the post describes practical examples where an ad says, “save your money today” followed by “sign up for this secret or risk losing your saving”. This ad automatically falls in the banning category. The example is followed up by an explanation that the search engine would ban ads that have chain letters implying that nonparticipation risks a loss or a bad fortune.
Money solicitation also expectedly falls on the ban list. The post explains that unless it’s from a registered charity or a recognized organization, no such ad would be seen on the search engine any longer.
Google Did The Same
As mentioned earlier, the ban is replica to what Google did earlier in March, with the excuse being that since crypto is not regulated, there are no safety guarantees to investors despite market claims. There is a risk that currencies could raise cash through initial coin offering then disappear.
Crypto has been in the limelight for its price volatility. December last year had its prices at an all-time high of $19,000 perhaps the reason for the rise in scams. But since then, the prices fell by half with the lowest being $6,620 in early April.