Ayodeji Ayenuwa
Google has announced the lifting of its five-year ban on cryptocurrency-related ads, effective January 29, 2024.
According to Google’s statement, “We want users to have adequate information to make informed financial decisions. Our policies are designed to provide users with information to weigh the costs associated with financial products and services and to protect them from harmful or deceitful practices.”
The decision comes with strict guidelines for advertisers, emphasizing compliance with local laws in all targeted regions.
For example, in South Africa, crypto ads must explicitly warn about the potential loss of funds. Google plans to provide additional clarity on the scope and requirements for advertising Cryptocurrency Coin Trusts later this month.
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Cryptocurrency Coin Trusts, described by Google as financial products that enable investors to trade shares in trusts holding extensive digital currency pools, are now permitted to create and serve ads on the platform.
However, the prohibition remains on direct promotions involving buying, holding, or swapping.
The policy update extends beyond Cryptocurrency Coin Trusts, allowing businesses that accept virtual currencies, sell mining hardware, and offer crypto educational content to advertise on Google, provided they adhere to existing Google Ads regulations.
Google stated, “Promotion of games where players can wager or stake NFTs in exchange for the opportunity to win anything of real-world value (including other NFTs)” is allowed. However, the permission is limited to in-game exchanges.
This strategic decision by Google raises questions about the sufficiency of previous anti-fraud measures and is perceived by some as a strategic move to capitalize on the recent 35% increase in cryptocurrency market capitalization from October to November 2023.
While enabling expansion for certain advertisers, Google’s specific ad types continue to impose limitations on the broader crypto industry.
Ultimately, Google’s decision to lift the ban on crypto-related ads reflects a nuanced approach, balancing the opportunities presented by the growing crypto market with a commitment to user protection through compliance with local regulations and established advertising guidelines.
Techrectory with Agency Report.
