Twitter bans cryptocurrency advertisements on fraud fears

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The prohibition will cover advertising of initial coin offerings (ICOs) - crowdfunding used to raise cash by creating new coins - as well as token sales, the San Francisco-based firm told Reuters on Monday.

Twitter's ban was first reported by Sky News a week ago, suggesting that the ban would come into effect at some point over the next two weeks after Twitter publicly said it was taking measures in preventing crypto-related accounts from "engaging with others in a deceptive manner".

Twitter will only allow cryptocurrency ads for exchanges and wallets provided by public companies listed on major stock exchanges - like Square. During the beginning of March, Google updated their financial services policy to include restrictions on digital currency promotion.

Following in the footsteps of Google and Facebook, Twitter Inc will enforce a ban on cryptocurrency advertisings in a move to help protect investors from fraud.

Twitter is the next social media giant to ban cryptocurrency advertising.

Facebook got into this mess after it was revealed earlier this month that data had been harvested from over 50 million users by a psychology professor.

A powerful Congressional committee has summoned the CEOs of the top three tech giants - Facebook, Twitter and Google - to testify next month about United Kingdom communications firm Cambridge Analyticas misuse of private data from up to 50 million user profiles.

The new policies on cryptocurrency ads that have recently been adopted by major social media platforms have caused the value of the digital asset to decline rapidly.

The price of bitcoin, already 4 percent in the red on Monday, fell further after the Twitter announcement. Facebook, in January announced its ban on cryptocurrency and Initial Coin Offers (ICO).

Profiles of Tesla and SpaceX's founder Elon Musk, John McAfee, and Ethereum co-founder Vitalik Buterin have frequently been cited.

Twitter and Square CEO Jack Dorsey's belief in Bitcoin doesn't seem to extend to all crypto.

ICOs are largely unregulated, and in recent times have become bogus.

6% drop was seen of bitcoin dropping to lowest $7800.