Advertising CeFi & DeFi
Crypto Trust. As the cryptocurrency landscape evolves, more and more companies are looking to capitalize on this growing trend, exploring the world of sponsorships on both social media and search engines.
Google, one of the tech industry’s giants, has recently announced a significant update to its cryptocurrency advertising policy, paving the way for new opportunities for advertisers. This update, set to take effect on January 29, 2024, comes at a time when many experts predict the approval of Bitcoin Exchange-Traded Funds (ETFs) in the United States, January 8-10, 2024 (source).
The growing importance of crypto exchanges, both CEFI (Centralized Finance) and DEFI (Decentralized Finance), in the context of cryptocurrencies is undeniable. Crypto exchanges offer users the ability to exchange cryptocurrencies securely and conveniently, enabling the purchase, sale, trading, and deposit of digital assets. Both centralized exchanges (CEX) and decentralized exchanges (DEX) act as a bridge between the cryptocurrency world and the traditional one, allowing investors to participate in a decentralized and global market.
The importance of centralized crypto exchanges has been and still is evident in the growth of the blockchain sector. CEXs rely on centralized intermediaries to facilitate transactions and provide financial services related to cryptocurrencies, such as exchanging cryptocurrencies for traditional currencies like the dollar or euro, opening the door to the adoption of cryptocurrencies by major financial institutions.
On the other hand, decentralized exchanges (DEXs) are gaining popularity due to their decentralized nature and the security and privacy features they offer users. These exchanges allow users to exchange cryptocurrencies directly with each other, without the need for a centralized intermediary. This reduces the risk of fraud and hacking on the one hand, giving users greater control over their funds and more secure transactions; on the other hand, it introduces smart contracts and decentralized protocols at the exchange level to offer financial services such as lending, staking, and insurance.
With the increasing interest and adoption of cryptocurrencies, the importance of crypto exchanges will continue to grow, shaping both the future of the financial sector and the world of advertising.
New Rules for Crypto Trust Ads
The most significant update to this policy change concerns the authorization for advertisers to promote Crypto Trust in the United States. Crypto Trust are a category of financial products that allow investors to trade shares in trusts that hold large amounts of digital currency, such as Bitcoin, Ethereum, and many others.
Google has clarified that advertisers will be allowed to advertise these products only if:
- they have completed Google’s own certification process;
- “their products, landing pages, and ads must comply with all local legal requirements in force in the country or region for which they want to obtain certification.”
Delving deeper into the issue of Cryptocurrencies and related products, Google refers to a specific page, where it explains in detail what is allowed and what is not. These guidelines are very precise and constantly updated.
To summarize, as of December 15, 2023, here is what is allowed and what is not:
Allowed
- Activities that do not involve the purchase, deposit, or exchange of cryptocurrencies, always in compliance with other Google Ads policies. Activities that accept payments in cryptocurrencies, hardware for cryptocurrency mining, tax and legal services, security services, platforms that use blockchain for their operations and do not advertise or sell cryptocurrencies or tokens, educational materials.
- Promotion of blockchain-based games with NFTs. NFT games that allow players to purchase in-game items, such as virtual clothing for a player’s characters, weapons, or armor with better stats, must be consumed or used in a game to optimize the user experience or help them advance in the game.
Not Allowed
- Games where players can bet or wager NFTs in exchange for the opportunity to win items of real value
- Social casino games that offer NFTs as a reward
- Games and bets with cash prizes, including ads related to games and bets published in the game destination
If the subject who wants to promote their crypto/blockchain product/service has Google certifications and is in line with local regulations, the following will be allowed to be advertised:
- Hardware wallets designed to store private keys for cryptocurrencies, NFTs, or other crypto-assets. For example, devices that allow users to securely store private keys for cryptocurrencies, NFTs, or other crypto-assets, but do not offer additional services such as purchase, sale, exchange, or trading of assets. Allowed in Bahrain, Canada, South Korea, United Arab Emirates, France, Philippines, Finland, Germany, Japan, Hong Kong, Indonesia, Israel, United States, and Thailand.
If the advertiser is licensed, the products/services comply with local regulations, and is certified by Google, it will be allowed to advertise Crypto Exchanges and software wallets in the following cases:
- Crypto Exchange allowed only in Canada, United Arab Emirates, Hong Kong, Indonesia, and Thailand.
- Both wallet and Crypto Exchange only in Bahrain, South Korea, Philippines, Finland, France, Germany, Japan, Israel, and the United States.
Advertising related to the following is not allowed at all:
- ICO, DeFi trading for promotion of purchase, sale, trading of crypto or related;
- Comparisons of issuers of crypto or related products.
It is important to note that “violations of the reported rules do not result in immediate suspension of the account without notice: you will be informed at least seven days before the suspension of the account. Read more information on suspended accounts.”
To request certification, if a subject believes they meet the minimum requirements, Google itself provides the direct link: Google Certification.
What are Crypto Trust?
“Trust Crypto” are investment funds that offer investors the opportunity to gain direct exposure to cryptocurrencies like Bitcoin without having to physically purchase the coins. These trusts operate as financial instruments that collect investors’ funds and use them to buy and hold cryptocurrencies. Crypto Trust offer investors a convenient way to invest in cryptocurrencies, avoiding the complexity of purchasing and directly holding digital coins.
The impact of Google’s advertising rules on crypto and NFTs (non-fungible tokens) is significant. These rules directly affect the visibility and promotion of crypto and NFT projects and platforms through online advertising.
For crypto, Google’s update to its advertising policy could limit the visibility of ads related to “crypto products and services.” This could make it more difficult for investors and users to find information about crypto, trading platforms, digital wallets, and other related services.
For NFTs, which have become very popular in recent years, advertising rules could limit the promotion of digital artwork, virtual collectibles, and other unique digital goods that are sold as non-fungible tokens. This could prevent artists, creators, and platforms from reaching a wider audience and potentially reduce interest and participation in NFT transactions.
However, it is important to note that Google’s update to advertising policies does not directly impact the crypto and NFT technologies themselves. These rules mainly concern the promotional and advertising aspect of such projects. Investors and users can still participate in the crypto and NFT market through other platforms and communication channels.
Ultimately, while Google’s advertising rules can impact marketing campaigns and the visibility of crypto and NFTs, the crypto and NFT sector continues to grow and evolve independently of these advertising restrictions. Investors and enthusiasts can still actively participate in this rapidly growing sector, although they may have to rely on alternative information sources and communication channels to stay updated on the latest news and opportunities.
Opportunities for Advertisers
This change to Google’s advertising policy represents a significant opportunity for advertisers in the crypto sector. Google is the most used search platform in the world, and the openness to advertising Crypto Trust will allow companies to reach an even wider audience. Investors and crypto enthusiasts will thus be able to access crucial information on these financial products via one of the most reliable search channels.
SEC Decisions and Approval of Bitcoin ETFs
Google’s update to its advertising policy coincides with the awaited decision of the SEC regarding Bitcoin ETFs. There are currently several approval requests underway by major companies in the sector, such as BlackRock, Ark, Fidelity, and Franklin Templeton. Bloomberg estimated the chances of approval of a Bitcoin ETF in the United States at 90% by January 10, 2024 (source). Moreover, it is expected that the SEC’s decision regarding the numerous approval requests will occur on a single occasion.
Impact on the Cryptocurrency Ecosystem
The approval of Bitcoin ETFs in the United States will have a significant impact on the cryptocurrency ecosystem. These financial products will allow investors to have direct exposure to the cryptocurrency market without having to physically purchase the coins. This could lead to an increase in demand and value for Bitcoin and other cryptos. Moreover, the approval of Bitcoin ETFs could also increase the confidence of institutional investors in the cryptocurrency sector, paving the way for further investment and large-scale adoption.
The impact of this and future changes to the advertising policy in the field will extend to crypto apps, dapps, and mobile apps, both CeFi and DeFi: the same context of Google Play will change significantly. With the approval of Bitcoin ETFs, crypto apps could experience an increase in the number of users and demand.
This could increase confidence in blockchain technology and favor its large-scale adoption. Additionally, crypto dapps, which are decentralized applications built on the blockchain, could benefit from increased interest and use by users. In conclusion, the update of the advertising policy extended to Google Play on crypto apps could lead to a positive impact on the entire ecosystem, considering also the data traffic of content and searches performed especially on YouTube.
With its update to the advertising policy, Google demonstrates that it is in tune with the sector’s evolutions and is ready to play a key role in promoting and adopting cryptocurrencies.
Market and Data
_old_Become an author
Wallet
