- The new crypto ads policy requires MiCA or CASP licensing for exchanges.
- Smaller exchanges may struggle with compliance due to capital requirements.
- Google’s new rules aim to improve safety by filtering unlicensed crypto actors.
Google will implement new crypto promotion rules in Europe beginning April 23. These procedures will require cryptocurrency exchanges and wallets to be licensed under the Markets in Crypto-Assets (MiCA) framework or the Crypto Asset Service Provider (CASP) regulation. This change follows the commission of MiCA in December 2024, a regulatory framework for digital assets across the European Union.
New Policy Requirements
Under the updated policy, crypto advertisers on Google will need to comply with both MiCA and local legal requirements. In addition, these advertisers must obtain credential from Google. The new rules apply to a wide range of European countries, including Austria, Belgium, France, Germany, Italy, Spain, and others.
The policy update requires that crypto services must be licensed and authorized before publicity on Google. This is sought at increasing the regulation of digital assets and preventing unlicensed operators from targeting European consumers. Google’s decision to implement these stricter standards is part of a broader regulatory push for crypto services in Europe.
Implications for Crypto Advertisers
Starting April 23, crypto exchanges and wallet services must prove their compliance with MiCA. This could prevent unauthorized companies from advertising on Google’s platform. However, experts warn that the new policy may cause some temporary gaps in enforcement, especially since national licensing rules differ between countries.
Legal experts, such as Hon Ng from Bitget, have pointed out that smaller crypto exchanges may struggle with MiCA’s requirements. These include the capital requirements of 15,000 to 150,000 euros and the need for dual certification from both Google and local regulators.
Despite these challenges, Google’s action is seen as an action toward safer cryptocurrency domains. The MiCA framework demands anti-money laundering and counter-financing of terrorism criteria, which could reduce the risk of deceitful activities, such as ICO scams that plagued the industry before 2023.
Challenges in Enforcement
The varying transition periods for national licensing across European countries present enforcement challenges. As a result, there may be temporary gaps in regulation, especially for smaller entities struggling to meet the compliance demands. While Google is committed to creating a safer advertising environment, the enforcement process could become more complex with the differing requirements across jurisdictions.
Google’s guideline transformation aligns with Europe’s goal to regulate the cryptocurrency sector more exactly. However, the broad benefit of these measures stays to be witnessed. As the deadline approaches, crypto companies must confirm they meet the new measures or risk being banned from advertising on Google.
