Google bans cryptocurrency advertising from its platforms

Google, the largest provider of digital advertising on the internet, has banned cryptocurrency advertising from all its platforms.

The Alphabet company, which did not specify why it made the decision, will change its advertising policy for certain financial services and cryptocurrencies from June.

Google said the ban also applies to other financial products like spread-betting and content related with cryptocurrencies “including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets and cryptocurrency trading advice”.

This move comes after Facebook announced in January that it would ban all ads for Bitcoin and other cryptocurrencies because of concerns that scammers were using the advertising to mislead users.

Many startup companies have sold custom currencies, some thought to be illegal, in initial coin offerings to raise money and fund new software projects.

On Tuesday the International Monetary Fund also issued a warning on the dangers of cryptocurrencies. IMF chief Christine Lagarde said: “Money laundering and terrorist financing is only one dimension of the threat.”

"The rapid growth of crypto-assets, the extreme volatility in their traded prices, and their ill-defined connections to the traditional financial world could easily create new vulnerabilities.

"We must welcome their potential but also recognise their risks,” she wrote.

The value of Bitcoin, Ethereum and Ripple all dipped after the news emerged.