Cryptocurrency promotional materials reappeared on Google’s platform after the company’s updated financial products and services policy went into effect on August 3. Recall that the search giant banned advertising about crypto and ICO – that is, the initial offer of tokens – back in June 2018. True, the latter still banned; which means that crypto startups will still not be able to advertise their ICOs in a search engine.
Recall that ICO is the initial offer of tokens, that is, various cryptocurrencies. The essence of the event is to sell coins to early investors at a minimal price. Thus, they get the opportunity to capitalize on the growth in the value of the asset in the future; and the developers receive the funding necessary to further develop their platforms.
And although the cryptocurrency industry is much more mature than a few years ago; the problems with advertising its representatives are still relevant.
For example, in July 2021, the leadership of the TikTok platform opposed the advertising of cryptocurrencies. However, now the situation is gradually improving. And Google contributes to this.
Google advertises crypto again
Under the new rules, “advertiser exchanges and wallets” targeting consumers in the United States of America will be able to post their content on the Google platform if they meet certain requirements. Thus, Google will increase the income of its parent company Alphabet.
However, revenues from advertising crypto products are likely to be a drop in the ocean; since the total revenue of Alphabet in general from all advertising placements reaches $ 147 billion a year.
Google’s stringent requirements are to weed out unwanted ads and obvious cryptocurrency scams. Advertisers must be registered with the Financial Crimes Enforcement Network (FinCEN) as a “money services firm and at least one state or federal bank as a payment platform”.
ICOs, decentralized trading protocols, and announcements for the purchase / sale of certain coins will still be banned. Celebrity advertising for anything related to digital assets is also prohibited. And this is a very reasonable move, since scammers constantly pretend to be famous persons in order to induce their victims to certain actions.
At the same time, China still takes the lead in the total share of fraudulent transactions. According to analysts of the Chainalysis platform, between April 2019 and June 2021, the volume of transfers between Chinese crypto-wallets related to crime reached $ 2.2 billion.
However, there is some positive news as well. Gradually, the share of China in the shadow turnover of the crypt is decreasing.
We believe that the changes to how Google work will benefit the cryptocurrency industry. Still, taking into account the requirements of the search giant, only reliable cryptocurrency exchanges and wallets will most likely be able to advertise in it, which means that users will be less likely to encounter fraud. Thus, the niche of digital assets will receive more investors, and its reputation will not suffer. And this clearly looks like a path for the massive popularization of cryptocurrencies.