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The new regulation permits firms that have passed stringent regulatory obstacles to post advertisements.
Google, the internet advertising powerhouse, reversed a nearly three-year-old restriction that barred cryptocurrency exchanges from utilising its ad services in an unexpected move on Wednesday.
“Beginning August 3, advertisers offering Cryptocurrency Exchanges and Wallets targeting the United States may advertise those products and services when they meet the following requirements and are certified by Google,” reads a policy update on the company’s support page.
Exchanges must meet requirements such as being registered with “FinCEN as a Money Services Business and with at least one state as a money transmitter” or “a federal or state chartered bank entity,” possibly opening the door to advertisements from services such as Anchorage and Paxos.
The vast majority of crypto institutions will not be able to take advantage of the new regulation, since “ads for initial coin offerings, DeFi trading protocols, or otherwise promoting the purchase, sale, or trade of cryptocurrencies or related products” remain illegal. News and chart aggregators, as well as “signals” and analysis services, continue to be blacklisted.
Google’s regulations for crypto advertisements have frequently been contradictory, and experts have called them “unfair” at times. Throughout 2018, the search giant flipped-flopped on an exchange ad prohibition, had “Ethereum” as a banned phrase in advertisements at one point, and despite stringent regulations, occasionally enabled scam ventures to sneak through the cracks.
Because of the new advertising regulation, crypto enthusiasts in the United States may soon be swamped with advertisements. Binance is a cryptocurrency exchange. The US and FTX are now competing for market share in the US, with FTX in particular ready to spend on nontraditional advertising venues. Earlier this year, it was announced that FTX bought the naming rights to the home of the National Basketball Association’s Miami Heat until 2040, which will soon be the FTX Arena.