In a move to ensure increased transparency and safety in the cryptocurrency industry, Google Ads has made it mandatory for United Kingdom-based cryptocurrency firms to register with the Financial Conduct Authority.
Google Ads has introduced a new policy, necessitating all cryptocurrency exchanges and wallets targeting the United Kingdom (UK) to be registered with the country’s financial regulator, the Financial Conduct Authority (FCA). This step aims to elevate the level of transparency and security in the crypto sector.
Google Ads’ Policy Update
In the latest move to tighten regulations, Google Ads announced that starting from August 2021, crypto exchanges and wallets targeting the UK must be certified by the FCA. The announcement underpins Google’s intent to augment the safety and integrity of its advertising ecosystem, thereby building investor trust in advertised crypto businesses.
Conditions to meet the FCA Registration Requirements
- Financial services must be authorized in the UK or offer services that are exempted from regulation.
- The landing page URL and website domain present in the ad must be included in the FCA’s Financial Services Register or fall under the category of firms not required to be registered.
- Advertisers must ensure compliance with all the applicable laws and Google Ads policies, including UK financial services regulations.
The Crypto Advertising landscape
Google’s policy change follows a worldwide trend of escalating regulatory scrutiny on cryptocurrencies. It marks Google’s second significant policy revision in relation to cryptocurrency advertising. In 2018, Google initially banned crypto and Initial Coin Offering (ICO) advertisements, echoing similar bans by Facebook and Twitter. However, Google lifted the ban later in the same year, permitting regulated cryptocurrency exchanges to advertise in the US and Japan.
The Impact of Google’s Move
The introduction of FCA registration requirements by Google Ads for crypto firms is anticipated to bring about consequential changes. These changes will lead to improved investor protection and accountability, pushing the industry towards better transparency and maturity. Furthermore, it may encourage crypto firms to make a concerted effort towards compliance and avoid regulatory run-ins.
Final Comments
Google’s decision to require FCA registration for crypto businesses advertising on its platform is a welcome move in the right direction. By establishing stringent advertising standards, Google is ensuring the credibility of cryptocurrency firms, thus protecting investors from potential scams and fostering trust in the burgeoning crypto market. It will be interesting to observe how this development influences the overall trajectory of the cryptocurrency industry.
