Google has announced that starting on April 23, the company will enforce stricter advertising policies for cryptocurrency services in Europe, aligning with the Markets in Crypto-Assets (MiCA) framework. This policy update marks a significant step in regulating cryptocurrency advertising, aiming to enhance investor protection while potentially creating new challenges for smaller industry players.
The new regulations require all cryptocurrency exchanges and crypto wallet advertising in Europe to be licensed either under MiCA or the Crypto Asset Service Provider (CASP) regulation. Advertisers must also navigate local legal requirements and receive certification from Google, ensuring compliance with regulations that can vary across different European nations.
This shift in policy comes in anticipation of the MiCA framework’s implementation in December 2024, which introduces the first comprehensive regulatory structure for digital assets across the European Union. While the intention is to filter out unregulated players and enhance investor safety, legal experts have described this move as a “double-edged sword.” Hon Ng, chief legal officer at Bitget, emphasizes the need for a balance in policy design: “On one hand, they do enhance investor protection by filtering out unregulated actors. However, without flexibility in implementation, the policy may become overly restrictive, especially as licensing transitions vary by jurisdiction.”
Impact on Smaller Players
The requirements set forth by Google may impose significant compliance costs on smaller exchanges, which could struggle to meet MiCA’s capital requirements ranging from 15,000 to 150,000 euros, as well as the dual certification needed from both Google and local regulators. “These measures are a net positive for trust but need flexibility to avoid stifling innovation,” adds Ng.
Critics of the policy suggest that the updates may prioritize shielding Google from liability rather than enhancing investor protection. Mattan Erder, general counsel at decentralized blockchain network Orbs, warns that if the MiCA and CASP registration processes are burdensome, smaller players may find it increasingly difficult to compete in these regulated markets.
As the cryptocurrency landscape continues to evolve, the implications of Google’s advertising policy will be closely monitored, particularly its impact on market dynamics and investor safety. The hope is that with careful balancing, these regulations can foster a more secure environment for all participants in the digital asset ecosystem.
