Search engine-turned-tech giant Google is adjusting its advertising policy around cryptocurrency exchange and wallet services, according to a company’s web announcement today. The changes will take effect in August. Let’s take a look at the brass tax around the new policy and how it differs from Google’s stance in recent years:
Google Policy: What’s Changing?
Starting Aug. 3, cryptocurrency exchanges and wallets targeting US consumers “can advertise those products and services when they meet the following requirements and are certified by Google,” according to the published statement. The adjustment is part of Google’s broader financial products and services policy.
The requirements mentioned above in the initial report include registration with both “FinCEN as a money services company and with at least one state as a money transmitter” or “a federal or state authorized banking entity.” Previous cryptocurrency exchange certificates that were issued will be revoked, and cryptocurrency exchange and wallet companies must request new certificates starting in July, once the apps are available.
In addition, advertisers must comply with all applicable federal, state, and local legal requirements and the broader Google Ads policies.
Notably, the update also specifically excludes “initial coin offerings, DeFi trading protocols, or the promotion of the purchase, sale, or trade of cryptocurrencies or related products” from being advertisers. In addition, “ad destinations that add or compare issuers of cryptocurrencies or related products” will not be allowed.
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Google’s history with crypto ads
The policy change is the first since 2018, when cryptocurrency advertising was widely banned earlier in the year. In September 2018, the search engine relaxed its policy and allowed exchanges to be ‘certified’ with Google in order to advertise. The certification only applied to advertisers targeting the US and Japanese markets.
This has led to unique challenges, particularly for exchanges looking to build a good relationship in the US market.
Increased Crypto Adoption Likely Influenced Google’s Recent Policy Adjustment | Source: CRYPTOCAP at TradingView.com
The move suggests that Google is preparing to allow cryptocurrency exchanges and wallets to advertise, while still implementing significant regulatory hurdles to do so. Despite not having changed for years, most crypto advertisers did not anticipate the current policy adjustment. While the door will remain closed for a good chunk of crypto institutions, the policy is certainly more lenient than its 2018 predecessor.
Despite strict guidelines to date, the company has still faced past scrutiny for allowing fraudulent projects to escape the company’s advertising rules; It remains to be seen how it will be affected in the future.
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Featured Image from Pixabay, Charts from TradingView.com