Snap Inc. Targets ICOs, not cryptos
Parent firm Snap Inc. has been slowly implementing the policy since February, Cheddar reported on Monday. It began by only restricting ads for ICOs, while allowing those related to cryptocurrency more generally.
A company representative confirmed that Snapchat is prohibiting ICO ads, but did not comment on whether it plans to expand the ban to other crypto activities, CoinDesk reports.
So far, the firm's stance has been pretty lenient compared to other social media giants.
As mentioned, Facebook banned most ads and promoted posts about cryptocurrencies, including grassroots technologies like Bitcoin.
Twitter follows suit
Twitter is reportedly about to crack down on ads too. Though yet to be confirmed, the ban is expected to affect cryptocurrency wallets, exchanges and ICOs, with some exceptions.
The micro-blogging service is also working to target phishing accounts that have been plaguing the site in recent months. Vitalik Buterin and Elon Musk are among those whose identity has been hijacked by scammers using fake profiles.
Vitalik Buterin even changed his Twitter name to ‘Vitalik “Not giving away ETH” Buterin’ in an effort to quell the attempts to persuade fans to transfer ETH to fraudulent Ethereum wallet addresses in the hope of receiving Ether giveaways.
During the effort so far, some community thought leaders and official company accounts also found themselves restricted by mistake.
SEC versus CFTC versus IRS
The recent moves to block crypto ads on social media come amid stern warnings on ICOs from the U.S. Securities and Exchange Commission (SEC), which has suggested many crypto tokens could be considered unregistered securities.
The Commodity Futures Trading (CFTC) is also clamping down on cryptos, along with the IRS, who see cryptos as property which should be subject to capital gains tax. The CFTC sees cryptos as commodities and the SEC see them as securities, respectively.
As such, a power struggle is currently underway within the U.S. government.