Google has decided to follow on Facebook's footsteps and ban cryptocurrency-related advertising. The ban will enter into effect starting June 2018, the company said today in a help page.

In June 2018, Google will update the Financial services policy to restrict the advertisement of Contracts for Difference, rolling spot forex, and financial spread betting. In addition, ads for the following will no longer be allowed to serve:
    ‧  Binary options and synonymous products
    ‧  Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice)

The ban will enter into effect across all of Google's advertising network, including ads shown in search results, on third-party websites, and YouTube.

Some ads will be allowed, but not many

But the ban is not total. Google said that certain entities will be able to advertise a limited set of the banned services, including "cryptocurrencies and related content."

These advertisers will need to apply for certification with Google. The downside is that the "Google certification process" will only be available for advertisers located in "certain countries."

Google did not provide a list of countries, but said the advertisers will have to be licensed by relevant financial services and "comply with relevant legal requirements, including those related to complex speculative financial products."

Prices for almost all cryptocurrencies fell across the board today after Google's announcement, and most coins continued to lose value.

Scams and phishing sites to blame

While Google did not provide a backdrop to the reasons it banned cryptocurrency ads, they are likely to be the same to the ones cited by Facebook —misleading ads being abused to drive traffic to financial scams and phishing sites.

There's been a surge in malware and phishing campaigns targeting cryptocurrency owners ever since Bitcoin price surged in December 2016 [1, 2]. Just last month, Cisco Talos and Ukrainian police disrupted a cybercriminal operation that made over $50 million by using Google ads to to drive traffic to phishing sites.

Malicious ads for cryptocurrencies
Malicious ads for cryptocurrencies

A report published by "Big Four" accounting firm Ernst & Young in December 2017 reveals that 10% of all ICO (Initial Coin Offering) funds were lost to hackers and scams, and cryptocurrency phishing sites made around $1.5 million per month. The company says that cryptocurrency hacks and scams are a big business, and estimates that crooks made over $2 billion by targeting cryptocoin fans in the past years.

Furthermore, a Bitcoin.com survey revealed that nearly half of 2017's cryptocurrencies had already failed.

The recent trend of using the overhyped cryptocurrency market and ICOs for financial scams is also the reason why the US Securities and Exchange Commission (SEC) has started investigating and charging people involved in these practices.

This constant abuse of the cryptocurrency theme was the main reason why Facebook banned such ads on its platform, and is, most likely, the reason why Google is getting ready to implement a similar ban in June.

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