A few months back Facebook made headlines by banning all crypto related ads from their platform. This week, Google confirmed they will be doing the same. A sweeping ban that will eliminate ads for basically anything crypto related. It includes ads for crypto exchanges and even ads for “trading advice”.
What’s very odd about this is that if you think of a site like Gemini, a totally legal and regulated exchange, it will be banned by Google and Facebook, the two largest online platforms on Earth.
Of course, the reason that has been given is that they are looking to protect consumers, but I believe there may be a bigger issue at play. And that is the fact that these online platforms have inside knowledge that harsh regulation is coming soon to the crypto markets and they are trying to get ahead of it by banning the ads now. Because in reality, crypto ads make up a tiny portion of the total ads they serve. Most crypto people just happen to see them so much because of the tracking cookies placed on their computers and the fact that they visit crypto related sites. But non-crypto people barely see these ads.
It’s quite well known that large tech players have become very political lately. Companies like Facebook and Google both are headed by CEOs and board members with very close ties to high level regulators and political officials all around the world. If anyone knows what type of regulation is coming to crypto, it would be these individuals because of their close connection to political insiders.
As usual, in investing you look for early signals to point to events that will take place in the future. I believe that Facebook and Google both banning anything crypto related is a very strong signal that governments have plans to heavily regulate crypto in the near future. They may very well come down with a heavy hand by introducing sweeping laws and regulations, causing severe volatility in the markets when the do.
I have been writing on this blog for several weeks that until the SEC fud clears, the markets will not turn bullish. Signals like the ones from Facebook and Google tells me that it may happen sooner than later, but the regulations we see may make a lot of investors very unhappy, at least in the short term.