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Google Bans Cryptocurrency Ads & Restricted Financial Product Policy
Google Bans Crytocurrency ads & Restricted financial product policy

Google Bans Cryptocurrency Ads & Restricted Financial Product Policy

We all know that Google and Facebook both are online advertising giants of the digital planet. These are like the two swords that cannot be contained in one sheath. Google may be a month late in this move but it now came out eventually last night.

What update!!!!

Remember when Facebook made an announcement on 30th January 2018? “As of a new ruling issued on January 30, ‘ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.’”

Now, Google also comes up with these new guidelines in their Financial services policy. This guideline will imply from June 2018. This ensures certain restrictions on the advertisement of certain entities.

The Actual News

According to the Google’s support update, “Google will 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)

Ads for aggregators and affiliates for the following will no longer be allowed to serve:

  • Contracts for Difference
  • Rolling spot forex
  • Financial spread betting
  • Binary options and synonymous products
  • Cryptocurrencies and related content.

This really turns a series of speculations. The land of market trembles loudly. However, it was expected as Facebook already cleared its status on the ICO (Initiative Coin Offering) and cryptocurrency.

So, what is there to cover. I mean Google banned advertisements from a certain type of businesses. How can it affect you!!! In a lot of ways. We are surrounded by many financial entities. Many people confuse it with all type of financial aspects but that is certainly not the case.

Let’s talk in details about what type of restrictions are there and to whom it concerns.

Understanding Where Will It Affect More & How Can You Tackle The Complication

In this section, we will cover all the five tracks where the Google advertisement guidelines will affect the most. First, you need to understand these terms and then we will understand how Google guidelines heavily impact these factors. So, without further ado, let’s get you started,

Contracts For Differences

According to Financial Times, Contacts For Differences is, “A contract for difference (CFD) is essentially a contract between an investor and an investment bank or a spread-betting firm. At the end of the contract, the parties exchange the difference between the opening and closing prices of a specified financial instrument, including shares or commodities.”

Contract For Differences usually denotes as CFD. It usually is not like the normal stocks. They don’t have voting but still have the potential to give investors an economic exposure. A CFD is a simple contract between the CFD provider and the investor.

Now, There is a reason Google listed these type of financial practice in their restricted actions. There may be several reasons, but the very first reason was this process is being used ill-mannerly. Deceiving people became a trend to get more revenue. This is the major reason Google is being extra conscious about CFD. Many of the advertisements were so deceitful that they created potential harms to the users.

Rolling Spot Forex

Rolling Spot is a technical term in the forex market. This concept of marketing does have its pros and cons. But we are not here to discuss that. Let’s understand the term Rolling spot Forex first.

Rollover is generally a process where the settlement date is extended. What the trader do is, simultaneously at the daily close rate they close the position and entering again at the entirely new opening rate the very next trading day. In simpler words, the trader extends the settlement period surrogately.

The rolling spot forex is often speculated as a very deceitful process where trickery is a skill. This is the reason many people reported it to Google as a fraudulent process. This must be the major reason for Google to ban its paid advertisements.

Financial Spread Betting

You need to understand this, financial betting is a short-term investment betting. As the name suggests, it is betting. So, what? Google deemed betting bad so, it demolishes it!!!! No, they just banned financial spread betting from its paid advertisement. Unlike the traditional marketing, Financial Spread Betting is a marginal derivative product. An investor has the flexibility to withdraw their bet whenever they want to either maximize the profit or minimize the loss.

The main reason for Google to ban the advertisements may be because the users were being tricked everytime they deal with some malicious service providers.

Binary Options & Synonymous Products

Binary options are simply based on “yes” or “no” type investment. Here you are either getting it all or losing it all. There is no middle ground. This is a risky investment where people were constantly being the victim of fraudulent activities. Many of the companies either refuse entirely to pay off or stop responding to their phone calls and emails.

This needs to be stopped for good. However, this guideline update will also create problems for those who are genuinely being the part of the business.

Cryptocurrencies & Related Content

Cryptocurrency is on the boom. However, due to non-supervisory control over this currency people are always afraid of what will come next in these digital currencies. In addition to that, there is a certain number of fraudulent activities that created buzz around the globe. Also, hackers started taking interest in these currencies. They are preferring bitcoins and other cryptocurrencies to extort money and get away.

The point of Google Prohibit Cryptocurrency Ads may not consider this though. Google’s Director of Sustainable Ads, Scott Spencer stated, “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.”

So, there is no scope for any changes anytime sooner!!!

What To Do!!!

Google may have banned online cryptocurrency ads. However, there is a catch!!!

Yes, Google is not a harsh entity to bog down the good guys. They acknowledge that if you are doing all these five types of marketing the right way, you must have the license in the area. You just need to verify that and you will be good to go.

The blog about the ban further says that “Advertisers offer Contracts for Difference, rolling spot forex, and financial spread betting will be required to be certified by Google before they can advertise through AdWords. Certification is only available in certain countries.

To be certified by Google, advertisers will need to:

  • Be licensed by the relevant financial services authority in the country or countries they are targeting
  • Ensure their ads and landing pages comply with all AdWords policies
  • Comply with relevant legal requirements, including those related to complex speculative financial products

Advertisers can request certification with Google starting March 2018 when the application form is published.”

So, if you follow the aforementioned rules and guidelines, you will face no issues in running an ad campaign on Google Adwords.

A Summary

Let’s have a look at the five type of businesses that are being banned by Google on their Advertisement platform.

  • Contacts For Differences is, A contract for difference (CFD) is essentially a contract between an investor and an investment bank or a spread-betting firm. At the end of the contract, the parties exchange the difference between the opening and closing prices of a specified financial instrument, including shares or commodities.
  • Rolling Spot Forex: Rollover is generally a process where the settlement date is extended. What the trader do is, simultaneously at the daily close rate they close the position and entering again at the entirely new opening rate the very next trading day. In simpler words, the trader extends the settlement period surrogately.
  • Financial betting is a short-term investment betting. Unlike the traditional marketing, Financial Spread Betting is a marginal derivative product. An investor has the flexibility to withdraw their bet whenever they want to either maximize the profit or minimize the loss.
  • Binary options are simply based on “yes” or “no” type investment. Here you are either getting it all or losing it all. There is no middle ground. This is a risky investment where people were constantly being the victim of fraudulent activities. Many of the companies either refuse entirely to pay off or stop responding to their phone calls and emails.
  • For Cryptocurrency, Google’s Director of Sustainable Ads, Scott Spencer stated, “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.”

I hope that this post educates you about the specifics you are looking for. Thanks for your time and patience. Have a good fortune and happy campaigning!!!

 

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