Bitcoin Crashes Again amid Social Media Ban on Crypto Ads

Just a few months after Facebook banned cryptocurrency adverts on its platform, Twitter has followed in its footsteps by confirming reports from earlier this month that it was implementing a global crackdown on ads for Initial Coin Offerings (ICOs). Twitter’s updated Restricted Content Policies now requires any project seeking to conduct a token sale to have proof of legal regulation in the targeted country before it is allowed to run adds on the social platform. The same goes for cryptocurrency exchanges and wallets which will now have to be publicly-listed companies on major stock markets.

Bitcoin dropped 12 percent in January after Facebook, which happens to be the world’s second-largest online advertiser, said it would be banning all adverts that promote cryptocurrencies in a bid to prevent what it termed as “financial products and services frequently associated with misleading or deceptive promotional practices.” Twitter’s updated policy is more or less giving the same vibe since the terms it has set are meant to curb the same problem. The policy effectively requires that any adverts for financial products and services must be compatible with all applicable laws in the target countries and the all information regarding the products or services must be provided to the investors. Also, the owners of the ads will have to provide necessary disclosures as well as balanced information detailing the risks and benefits.

Reddit Also Jumps Ship

In similar news, Reddit, another popular social media website, will no longer be accepting bitcoin as payment for the platform’s Reddit Gold membership program. While there is still hope that the payment option may be reinstated in the future, players will have to manage with the existing options, that is, PayPal and credit cards. According to “emoney04”, a Reddit admin, the removal of bitcoin as a payment option was prompted by the upcoming Coinbase change and “some bugs around the Bitcoin payment option that were affecting purchases for certain users.”

“We’re going to take a look at demand and watch the progression of Coinbase Commerce before making a decision on whether to re-enable,” the administrator said.