Social media platform X, formerly known as Twitter, has reversed its recent ban on paid cryptocurrency promotions, now allowing such content under a revised "paid partnership" disclosure framework. The policy change was confirmed by X's Head of Product, Nikita Bier, who clarified that a previous update which placed crypto and financial projects under a ban was a mistake.
Under the new rules, influencers and creators are permitted to publish promotional content related to cryptocurrencies, provided they comply with the platform's disclosure rules and all applicable advertising and financial promotion laws. Each such advertisement must now be accompanied by a "paid partnership" tag, a feature that was previously unavailable for crypto projects. This move is aimed at increasing transparency and protecting users from undisclosed endorsements.
However, the feature will not be available in jurisdictions with stricter regulatory stances on crypto advertising, including the European Union, the United Kingdom, and Australia. Regulators in these regions, such as the U.K.'s Advertising Standards Authority, have recently cracked down on crypto ads deemed misleading.
The policy shift was met with a playful reaction from prominent figures in the crypto community. David Schwartz, Ripple CTO Emeritus, tested the new feature by replying to a post praising Ripple, and his reply was automatically tagged as a "paid partnership," which he treated as a mockery of the new system. The incident highlights the ongoing tension between platform rules and community engagement.
X first imposed restrictions on crypto advertising in 2018, following similar actions by tech giants like Google and Meta. The platform's latest update is part of a broader vision under owner Elon Musk to evolve X into an "everything app," integrating social networking, media, and financial services. Recent developments include partnerships with Visa and plans for features like "Smart Cashtags," which would allow users to see real-time price charts and trading options for major assets, including cryptocurrencies, directly within the platform.
