When it came to crypto ads, Google so far adhered to a policy of banning them completely. Following a June announcement, this changed on August 3, and certain parties will have the option to put up a crypto ad, as long as it falls within Google’s relatively tight restrictions. Crypto ad professionals support the policy change, but uncertainty over the future of crypto advertisements remains.
Yes to crypto ads – Google changes its position
Google did a 180 on its crypto ad position after updating its financial products and services policy on August 3. Having banned ads related to cryptocurrencies and initial coin offerings in June 2018, Google updated its policy, and ads are back on the table. In June, Google’s crypto ad policy revision permitted “advertisers offering cryptocurrency exchanges and wallets” targeting US consumers to promote their services as long as they operate within Google’s requirements.
Companies will need to register with the US Treasury’s Financial Crimes Enforcement Network (FinCEN) or a federally or state-chartered banking regulator. Moreover, the renewed Google ad policy asks advertisers to pass its Cryptocurrency Exchanges and Wallets verification and provide necessary business documentation.
This strict approach is rooted in the ICO hype in 2017/18 when Bitcoin’s last bull run resulted in an abundance of shady ICOs clamouring for money with the help of ads. As a result, Google banned advertising any crypto-related products. This time, the changes in its policy and its strict requirements should keep dodgy advertisers and scam products out of the game. ICO ads are entirely off the table, as are those promoting decentralized finance trading protocols, advertisements that promote the purchase or trading of cryptocurrencies, and celebrity endorsements. In light of fake celebrity endorsements doing actual harm, the case of fake Steve Wozniak ads on YouTube comes to mind, this is likely a sensible approach.
Crypto ad policies in the future
Although Google changed its position on advertisements, not all tech giants agree. TikTok recently prohibited all advertisements related to cryptocurrencies, trading platforms, pyramid schemes, “get rich quick” schemes, and more. Given TikTok’s young audience, this ban is likely done with best intentions, but it sparks the question of how tech companies and crypto advertisements will co-exist in the future. TikTok became a fan favourite for promoting meme coins such as Dogecoin in the last year and its success prompted many copycats to try and emulate its approach.
However, with cryptocurrencies and blockchain technology slowly but inevitably penetrating the mainstream, it is not only policymakers that need to rethink their position. An outright ban on ads, such as Facebook’s 2018 ban following the ICO hype, will probably result in tech companies forgoing massive profits as advertisers look for alternative ways to spread the word about their projects and services. A more constructive approach would be to engage with key opinion leaders in the cryptocurrency space to work out a sustainable solution that both parties benefit from. While crypto ad policies still are “the wild west”, it does not have to stay this way forever.
