Crypto ads are allowed again in updated policies
The banned ones
In 2018 Google, Facebook and Twitter had made the decision to ban ads related to the crypto world. With a measure that goes against the financial future, all advertisements linked to almost any edge of the cryptocurrency market, such as digital wallets, exchange sites and investment advice had been prohibited. This decision was based on the supposed intention of protecting users from possible scams, and limiting the promotion of initiatives that did not comply with the legal regulations of some countries.
At the time, some players in this maturing category were using deceptive promotional practices like binary options and initial coin offerings (ICOs). Actions that did not represent the majority, and that with the prohibitionism of advertisements unfairly stigmatized the crypto world, covering it with suspicion cloak.
After 3 years of that controversial decision, in 2021, an update of Google, Facebook and Twitter financial services policies came to light where new guidelines were established that revoke the prohibitionist decision, enabling the advertising of products and services related to cryptocurrencies. It seems that we are back to the step where financial future is beginning to be accepted again.
But not everything is as fast as we would like. Despite crypto ads are allowed again, the platforms have established a series of specific measures that crypto companies must comply with if they want to advertise. Among the different measures of each platform, we can mention that registration in the Financial Crimes Enforcement Network (FinCEN) stands out as a regulated financial services company, with the support of a money-transmitting State, or a banking entity authorized by the federal government or some other entity. The idea is that advertisers are regulated entities that comply with FinCEN rules. This body hopes that the data will then be shared with the United States Treasury Office.
In the case of Google, they will also have to comply with the relevant legal requirements, according to the law where they operate, either at the state or federal level. Before crypto ads are allowed again, they must ensure that their ads and landing pages comply with all Google Ads policies. It was also communicated that the certifications that have been delivered, prior to the update date of these policies, are revoked. For this reason, advertisers have to make a new application for certification of Cryptocurrency Exchanges and Wallets.
Google’s 2021 policy update maintains a ban on advertisements for initial coin offerings (ICOs), decentralized finance (DeFi) trading protocols, and other advertisements for the purchase or trading of cryptocurrencies. This also includes presales, crypto loans, initial decentralized exchange offerings (DEXs), token liquidity pools, celebrity cryptocurrency endorsements, non-hosted wallets, and unregulated decentralized applications (dApps).
On the other hand, since 2021, TikTok has maintained the prohibition of financial services and cryptocurrencies, trading platforms, pyramid schemes, credit cards, loans, and some others on his ads. It is to be expected that as TikTok becomes a healthier, honest and mature video sharing platform, it is likely to follow Google’s footsteps in allowing cryptocurrency exchanges and wallet services to advertise on its platform.
It is clear that the restrictions implemented in 2018 responded to an unfair fear and mistrust on crypto. More if we take into account the number of questionable products that do not suffer this type of harassment. Are online casino games fair? Are ultra-processed products saturated in sugars and fats good for health? And what about loans with interest rates above 80%? are they transparent?
Fortunately, over time, the double standard seems to be exposed, often based on ignorance. The decision to ease the restrictions is a sign that the crypto world is becoming increasingly legitimate. Cryptocurrency companies are starting to be seen for what they are, a legitimate asset class. Numerous governments, financial institutions, private companies and technology platforms in general have taken a more liberal stance towards cryptocurrencies. With such developments, the crypto market will see a steady increase in the number of buyers and users in the near future.
For these reasons, if you are thinking of taking your cryptocurrency to the next level, acquiring potential customers through ads, at Lychee we can give you a hand. A group of highly experienced humans, passionate about Technology, Digital Marketing and Crypto Advertising with effective and measurable results are waiting for you.