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Google Tightens Crypto Ad Policies in Europe Under MiCA Framework

Coin WorldMonday, Apr 14, 2025 6:35 am ET

1min read

Google has announced that it will begin enforcing stricter advertising policies for cryptocurrency services in Europe, aligning with the Markets in Crypto-Assets (MiCA) framework. This policy update, effective from April 23, mandates that cryptocurrency exchanges and crypto wallet advertising in Europe must be licensed under the MiCA framework or the Crypto Asset Service Provider (CASP) regulation. Additionally, crypto advertisers on Google will need to comply with local legal requirements, including national-level restrictions beyond MiCA, and be certified by Google.

The new advertising policy will apply to most European countries, ensuring a uniform regulatory environment across the region. Google has clarified that policy violations will not result in immediate account suspensions; instead, a warning will be issued at least seven days before any account suspensions. This approach aims to provide a fair and transparent process for advertisers to comply with the new regulations.

The implementation of the MiCA framework in December 2024 introduced the first comprehensive regulatory structure for digital assets across the European Union. This framework aims to enhance investor protection and reduce the prevalence of scams and fraudulent activities in the cryptocurrency industry. The MiCA framework's strict Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) requirements, along with transparency measures, are expected to create a safer ecosystem for investors.

However, the new policy has been described as a "double-edged sword" by industry experts. While it enhances investor protection by filtering out unregulated actors, it may also create temporary gaps in enforcement and compliance challenges, particularly for smaller exchanges. The transition periods for national licensing vary across jurisdictions, which could lead to inconsistencies in implementation. Additionally, the capital requirements and bureaucratic hurdles of dual certification (both Google and local regulators) may pose significant challenges for smaller exchanges, potentially stifling innovation in the industry.

Some industry watchers argue that the updates may be more oriented toward protecting Google from liability rather than directly protecting investors. If the MiCA or CASP registration process turns out to be burdensome and expensive, smaller players may struggle to compete in these jurisdictions. This could lead to a concentration of market power among larger, well-established players, potentially limiting competition and innovation in the cryptocurrency sector.

Overall, Google's new crypto advertising requirements under the MiCA framework represent a significant step toward enhancing regulatory compliance and investor protection in the cryptocurrency industry. However, the effectiveness of these measures will depend on their implementation and the ability of smaller exchanges to adapt to the new regulatory environment. The coming months will be crucial in assessing the impact of these changes on the cryptocurrency market and the broader financial ecosystem.

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