• Facebook and Google have already announced bans on such ads
• Federal agencies are cracking down on fraudulent cryptocurrency schemes
Twitter Inc. plans to ban online ads that promote cryptocurrencies and initial coin offerings, a person familiar with the matter told Bloomberg Law March 19.
Twitter would be joining a growing list of digital advertising giants that are moving to ban ads on the emerging technology, which has been rife with scams and fraudulent claims.
The person, who asked not to be identified because Twitter’s plans aren’t public, didn’t provide further details about the ban.
Facebook Inc. banned cryptocurrency ads in January. Alphabet Inc.'s Google said it would ban such ads starting in June. Google and Facebook said in blog posts that their moves are part of a broader effort to crack down on deceptive and misleading advertising on their platforms.
Companies often issue cryptocurrencies through initial coin offerings to bypass rules in raising money through other traditional means, such as publicly selling shares or venture capital funds. And they have recently turned to internet publishers and social media channels to draw investors.
Federal agencies in recent months have been cracking down on fraudulent cryptocurrency schemes. The Justice Department, Securities and Exchange Commission and Commodity Futures Trading Commission have brought more than a half dozen enforcement actions against initial coin offerings in the past six months, Bloomberg Law data show.
The Federal Trade Commission March 16 sued four men for allegedly misleading investors of cryptocurrency pyramid schemes.
-With assistance from Michaela Ross
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