Google lifted the advertising ban for crypto, how will this affect the market?
Google has updated its advertising policy for cryptocurrency exchanges and wallets. Now ads can promote their services and products if they meet the platform’s requirements.
In an official statement released by Google, the internet search giant is changing its advertising policies for crypto exchanges and crypto wallets.
The policy says that from August 3, crypto exchanges and wallets targeting the US will be able to advertise their products and services as long as they meet the stated requirements and are certified by Google.
To be eligible, an exchange or wallet must have a money operator license issued by the Financial Crime Network (FinCEN) and a money transfer operator license in at least one state; or a banking license is required.
Who will be left behind
Blockchain startups will still not be able to advertise their ICOs. Also, DeFi protocols or services that offer cryptocurrency trading, including “initial DEX offerings (IDOs), token liquidity pools, endorsements of well-known cryptocurrencies, non-dedicated wallets, unregulated DApps” will not be able to access the advertising platform.
We expect all advertisers to comply with local laws, regardless of the area their ads are targeting. This policy will apply to all accounts worldwide that advertise these financial products.
In 2018, Google banned the advertising of crypto exchange and crypto wallet services.
How will Google’s reversal of the advertising ban affect the crypto market?
The cryptocurrency market reacted badly to the news about the lifting of the advertising ban on Google. According to Aaron Chomsky, head of the investment department at the ICB Fund, lifting restrictions will not fundamentally change the balance of power in the industry because it affects a very narrow circle of potential advertisers.
Aaron Chomsky, head of the investment department of the ICB Fund,
This list is narrow and does not need much introduction. All the leading crypto media are talking about the same Coinbase. These companies are now targeting more reputable investors and using channels other than contextual advertising for communication, focusing more on mass coverage of a broad spectrum of investors.
Additionally, Google’s new policy actually encourages crypto businesses to enter the regulated space. For companies considering conquering the American market (including companies from Asia and Europe), this is an additional reason to strengthen the focus on obtaining appropriate licenses. But Chomsky said the news for the market as a whole has been unbiased so far.
Head of the investment department of the ICB Fund,
After a record number of searches for cryptocurrencies on Google in April, recent opinion polls show interest waning. Their future restoration may coincide with the finalization of industry regulations. In that case, many companies will consider using contextual advertising on Google on a large scale.
Knowledge remains the foundation of cryptocurrency
In the long run, lifting the ban on advertising services of crypto exchanges and crypto wallets will attract new digital currency users and significantly increase citizens’ awareness of cryptocurrencies. This will also contribute to the growth of the crypto market as a whole, as knowledge is the foundation of the digital currency industry.
Alexander Fedorov, former director of Cryptotrade LLC,
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 for a specific purpose in the foreign exchange markets, only unlike the classical foreign exchange market, such statements are made by the public, not by representatives of the government and central banks.
Still, experts say that information entering the market should be checked to prevent market manipulation. One of the reasons for the recent market crash was precisely manipulation in the information space. According to Ivan Petukhovsky, co-founder of the EXMO cryptocurrency exchange, market manipulation in traditional finance and other markets is punishable by fines. Therefore, now the cryptocurrency market is very easily controlled from the outside, given the complete absence of such legislation and the often need to disclose such transactions in their reports.