Google has updated its advertising policy for cryptocurrency exchanges and wallets. Now they can promote their services and products if they meet the requirements of the search engine.
“Starting August 3, crypto exchanges and wallets targeting the US can advertise their products and services as long as they meet the specified requirements and are certified by Google,” the policy says.
To be eligible, an exchange or wallet must have a money operator license issued by Financial Crime Network (FinCEN) and a money transfer operator license in at least one state; or a banking license.
Read also: Top 5 Googled Bitcoin questions
Who will be left behind
Blockchain startups still won’t be able to advertise their ICOs. In addition, DeFi protocols or services offering cryptocurrency trading, including “initial DEX offerings (IDOs), token liquidity pools, endorsements of well-known cryptocurrencies, unallocated wallets, unregulated DApps,” will not have access to the ad platform.
“We expect all advertisers to comply with local laws in whatever area their ads target. This policy will apply worldwide to all accounts that advertise these financial products, ”said Google.
In 2018, Google banned the advertising of crypto-exchange and crypto-wallet services.
Crypto market reaction to Google’s plan to reverse advertising ban
The cryptocurrency market reacted poorly to the news about the lifting of the ban on advertising on Google. According to Aaron Chomsky, head of the investment department of ICB Fund, the lifting of restrictions will not fundamentally change the balance of power in the industry, since it affects too narrow a circle of potential advertisers.
“This list is narrow and does not need much introduction. All the leading crypto media are talking about the same Coinbase. Now these companies are more likely aimed at accredited investors and use other channels for communication than contextual advertising, focused more on mass coverage of a wide range of investors,” the expert noted.
In addition, Google’s new policy is, in fact, encouraging crypto businesses to enter the regulated space. For those companies that are thinking of conquering the American market (among them there are firms from Asia and Europe), this is an additional reason to strengthen the focus on obtaining appropriate licenses. However, for the market as a whole, the news is so far neutral, Chomsky said.
“After a record number of searches on Google for cryptocurrencies in April, recent opinion polls show a cooling of interest. Their subsequent restoration in the future may coincide with the finalization of industry regulations. In this case, many companies will think about using contextual advertising on Google on a large scale, ” explained the head of the investment department of ICB Fund.
Information remains the main engine of cryptocurrency
In the long term, the lifting of the ban on advertising services of crypto-exchanges and crypto-wallets will allow attracting new users of digital coins and significantly increase citizens’ awareness of crypto-currencies. This will also contribute to the growth of the crypto market as a whole, since it is information that is the main engine of the digital coin sector.
“Any information in the modern world can affect the value of a particular cryptocurrency. After all, it is no longer a secret for anyone how verbal interventions can be used in foreign exchange markets for a specific purpose, only unlike the classical foreign exchange market, such statements are made not by representatives of governments and central banks, but by public figures who enjoy a certain authority in cryptocurrency circles,” said formerly Alexander Fedorov, director of Cryptotrade LLC.
Nevertheless, the information entering the market must be controlled and checked to exclude market manipulation, experts say. One of the reasons for the recent market decline was precisely the manipulation in the information field. According to Ivan Petukhovsky, co-founder of the EXMO cryptocurrency exchange, in traditional finance and other markets, market manipulation is prohibited and punishable by insane fines and threatens to close the company. Therefore, now, given the complete absence of such legislation and the often need to disclose such transactions in their reports, the cryptocurrency market is very easily controlled from the outside.
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