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Earlier this year (in March), Google announced a cryptocurrency ad ban that it went on to roll out in June – these were intended to protect its consumers and involved wallets, trading services, and Initial Coin Offerings (ICOs). This is all about to change with the company on September 25 ending the ban on cryptocurrency advertisements.

In a new update to its advertising policies, the company emphasizes that at the ads that would be allowed would only be those of “regulated” trading sites.

“The Google Ads policy on Financial products and services will be updated in October 2018 to allow regulated cryptocurrency exchanges to advertise in the United States and Japan,” Google explained. “Advertisers will need to be certified with Google for the specific country in which their ads will serve. Advertisers will be able to apply for certification once the policy launches in October. This policy will apply globally to all accounts that advertise these financial products. For more details, see About restricted financial products certification. The Financial products and services page will be updated once the policy goes into effect.”

Google was one of the tech companies that moved to prohibit cryptocurrency advertisements alongside Twitter and Facebook, though the latter later relaxed some of the restrictions it had placed on cryptocurrency-related advertisements. Google’s ban was so wide-ranging that it affected offerings from both legitimate wallet services and trading professionals.

This crackdown on crypto went on to rapidly spread across the internet leading to various bans from other companies, including LinkedIn, MailChimp and Snapchat. Even though this was meant to stop or at least slow down scammers on the internet it also whipped out legitimate blockchain projects which in turn slowed down adoption of digital currencies, stifled promotion and stoked more fears about mainstream acceptance of crypto.

The Reason Is Yet to Be Known

As is it stands, there has not been a clear explanation as to why the tech giant has chosen to lift the ban barely four months after it imposed it. It is speculated that the company believes that the hype that surrounded crypto, as well as the negative side effects associated with the skyrocketing values, have finally died down are at least reduced significantly. Still, it is possible that Google is simply keeping its eye on the prize i.e., the valuable ad money that crypto will bring in.

“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” Google’s Scott Spencer said in June when the original ban was rolled out.

MPs on the Treasury select committee have recently issued a report that states that bitcoin and other cryptocurrencies are “wild west” assets that expose investors to a litany of risks and therefore, there is an urgent need for their regulation. The report further pointed out concerns that consumers were left unprotected from the unregulated crypto market which also happens to be a conduit for criminal activities such as money laundering and illegal trade.

Apparently, the government and regulators have not been proactive in handling the arising issues that are associated with the crypto market – according to the Treasury Committee.

“Crypto-asset investors are currently afforded very little protection from the litany of risks. Namely, there are no formal mechanisms for consumer redress, nor compensation,” said the committee. “As the government and regulators decide whether the current Wild West situation is allowed to continue, or whether they are going to introduce regulation, consumers remain unprotected.”

Cryptocurrencies are currently covered by the Financial Conduct Authority (FCA), the City regulator, and there are still no formal mechanisms for investor compensation or consumer redress, something that Nicky Morgan, a conservative MP and the chair of the committee, says is unsustainable.

“Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks,” Nicky Morgan said. “Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced… It’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting. At a minimum, regulation should address consumer protection and anti-money-laundering.”

The Treasury Committee believes that there should at least be some regulation to add customer protection and fight money laundering. All of these issues stem from concerns regarding the volatility of digital assets – the prices of cryptocurrencies were so volatile that while the potential gains are quite large, so are the potential losses.

“The FCA agrees with the committee’s conclusion that bitcoin and similar crypto-assets are ill-suited to retail investors, and as we have warned in the past, investors in this type of crypto-asset should be prepared to lose all their money.”

The Treasury Committee’s recommendations have been noted and echoed by a number of stakeholders in the cryptocurrency industry including CryptoUK, a self-regulatory trade association for the United Kingdom’s digital currency industry.

“As an industry, we have been calling for the introduction of proportionate regulation to improve standards and encourage growth,” said Iqbal Gandham, the chairman of CryptoUK. “Self-regulation by the industry was always intended to be a starting point – this must now be matched by government action.”