Google Tightens Crypto Ad Policy in EU, Requires MiCA Licenses

Google has announced a significant change in its advertising policy for cryptocurrency services in the European Union, effective from April 23. The new policy mandates that businesses seeking to advertise crypto exchanges and software wallets on Google must comply with the Markets in Crypto-Assets (MiCA) regulation. This means that companies must be licensed as a Crypto-Asset Service Provider (CASP) by a relevant national competent authority to run promotions on Google's platform within the European Economic Area.

The updated policy applies to 30 countries, including major economies like Germany, France, Italy, and Spain. In addition to obtaining a MiCA license, advertisers must also adhere to all local legal requirements and be certified by Google. Some countries will have a transition period where existing licenses remain valid. For instance, in Finland, France, and Germany, country-based licenses will be recognized during transitional periods. The deadlines for these transition periods vary by country, with Finland's period ending on June 30 and Germany's on December 30. After these deadlines, only MiCA licenses will be accepted.

Google has stated that it will provide warnings to advertisers before taking any action on violations. This move by Google aligns with the broader regulatory framework introduced by the MiCA regulation, which aims to enhance consumer protection and mitigate systemic risks associated with cryptocurrency services. The new policy effectively means that exchanges, wallet providers, and token platforms operating without an EU license will be delisted from Europe’s largest digital advertising marketplace.

The implications of this regulatory tightening are multifaceted. While the primary goals are consumer protection and risk mitigation, the increased compliance burden may pose challenges for startups and smaller firms. The regulatory environment in Europe comes at a time when other geopolitical blocs are actively courting crypto innovation. For example, the United States has recently shifted its tone with several bipartisan congressional proposals and state-level deregulatory moves, creating openings for exchanges and infrastructure firms to scale with fewer regulatory hurdles. Similarly, regions like India, Russia, and Singapore are promoting pragmatic engagement with digital assets, offering regulatory clarity and swift licensing processes.

The MiCA framework introduces rigid definitions and license requirements for virtually all digital asset operations. However, it lacks meaningful accommodation for rapidly evolving sectors like decentralized finance (DeFi), zk-protocols, or metaverse-based economies. This regulatory approach may lead to a shift in venture funding and innovation away from the Eurozone. Web3 founders are increasingly choosing to incorporate in jurisdictions that offer regulatory clarity without suffocating red tape, such as the UAE, the US, or Asia. For European innovators, the message is clear: the continent’s approach to crypto is focused on containment, supervision, and licensing-first enforcement, which may result in a continental drift as the next generation of protocols, platforms, and pioneers chooses freedom of execution over the promise of future permission.