Search Engine Yandex Bans Cryptocurrency Ads in Russia
Date: 2024-08-20 Author: Henry Casey Categories: IN WORLD
Russia’s leading search engine Yandex banned ads related to cryptocurrency services in the country on August 19. The move is part of a broader effort by the Russian government to regulate the booming crypto industry.
According to a statement from Yandex, the ban specifically prohibits ads promoting cryptocurrency exchanges, blockchain services, smart contracts, cryptocurrency mining, and initial coin offerings (ICOs), as well as any ads promoting revenue from these activities.
However, ads related to bitcoin mining equipment and other cryptocurrency educational materials related to events are allowed under the new terms.
The ban is in line with the government’s ongoing efforts to strictly regulate digital currencies in an effort to reduce the risks of financial instability and illegal activities such as money laundering.
The advertising restrictions come as the Russian government and central bank discuss the creation of domestic cryptocurrency exchanges. The initiative is intended to ensure transparency of cryptocurrency transactions and full compliance with Russian law.
The goal is to tighten control over the cryptocurrency market, which has grown significantly in recent years but remains largely unregulated.
Russia’s regulatory efforts to ban ads related to cryptocurrency services contrast with Google, which added cryptocurrency wallet balances on various blockchains to its search features earlier this year after previously banning Bitcoin-related ads in 2018.
Yandex’s ad ban could have far-reaching implications for the Russian cryptocurrency industry. Despite these challenges, however, the outlook for the Russian crypto mining sector remains strong.
In June, Andrey Kataev, director of energy markets and external relations at the Russian Energy System Operator, said that crypto mining capacity in Russia could grow by 6.9 gigawatts, as he claimed that domestic miners want to expand the size of their network “by 2.5 times.”
The Russian government’s decision to legalize mining is expected to attract more investment into the sector, especially in regions with rich energy resources.
However, advertising restrictions may push crypto companies to find alternative ways to engage with their audiences. This could include increased use of word-of-mouth marketing, partnerships, and other forms of digital engagement that do not involve paid advertising.
Yandex’s move could be seen as part of a global trend in which tech companies are increasingly coming under pressure from governments to regulate the content they allow on their platforms.
