X Lifts Crypto and Gambling Ad Ban, Reshaping Influencer Strategies

In a significant shift, X (formerly Twitter) has removed cryptocurrency and gambling from its list of prohibited industries for paid promotions, effective immediately. This policy reversal allows influencers and Key Opinion Leaders (KOLs) to legally monetize content related to these sectors on the platform. The change marks a substantial departure from the ban initially implemented in June 2024.

Policy Reversal and Scope

The updated X advertising policy now permits paid promotions for the entire financial product category, encompassing loans, investment services, and cryptocurrencies. According to analyst DeFi Ignas, “Cryptocurrencies are no longer included in the X(X) paid promotion ban industry,” noting the change was observed recently, with the entry removed from the policy page as of February 16th. BeInCrypto reported on initial expectations of market changes in June 2024.

Gambling has likewise been removed from the prohibited list. Conversely, industries such as pharmaceuticals, tobacco, weapons, and weight loss have been newly added to the restricted categories.

Disclosure Requirements for Paid Partnerships

Under the new policy, influencers engaging in paid partnerships are required to clearly disclose all such promotions. X emphasizes that undisclosed promotions undermine credibility and erode user trust. Posts created through paid partnerships must include the “Paid Partnership” label, and influencers are responsible for adhering to all applicable laws, including the Federal Trade Commission’s (FTC) guidelines regarding endorsements, and reviews.

Distinction Between Partnerships and Advertising

X’s revised policy differentiates between paid partnerships and standard advertising. Content prohibited in paid partnerships may still be permissible through X ads, offering brands alternative avenues for promotion.

Community Reactions and Concerns

The policy change has elicited mixed reactions from the cryptocurrency community. While some users welcome the opportunity for increased promotion, others have expressed concerns. Cryptocurrency analyst Benjamin Cowen highlighted the potential impact on influencer business models, suggesting that “Now, 90% of cryptocurrency influencers need to find a new business model. They can no longer be maintained by just pretending to like the project they are paid to promote and handing over their tokens to people who trust them.”

Rune, another analyst, raised concerns about enforcement, noting that X is now banning users who promote cryptocurrencies, regardless of whether the promotion is disclosed. He stated, “This is a paid partnership in name only. Who can tell the difference between unpaid token promotion and paid promotion? There will be massive user bans on Crypto Twitter (CT) and everyone will be afraid to promote the token.”

Implications for Cryptocurrency Marketing

This policy change is expected to reshape cryptocurrency marketing strategies on X. Influencers who previously relied on informal promotional methods may need to adapt their approaches. Brands now have a compliant and legal pathway for campaigns, but strict adherence to disclosure obligations is crucial. The move signals X’s attempt to balance regulatory compliance with creator monetization.