Google has announced an update in its ad policy, indicating that financial services advertisers offering cryptocurrency exchanges and wallets targeting the United Kingdom, need to be certified by the Financial Conduct Authority (FCA).
Changes in the policy of one of the largest tech giants, Google, is set to impact cryptocurrency firms operating in the United Kingdom (UK). In a bid to meet new standards of transparency and foster trust among users, Google Ads is now requiring the certification of cryptocurrency exchanges and wallet advertisers targeting the UK by the Financial Conduct Authority (FCA).
The Policy Update
The policy update was announced by Google through an official post on its website. Henceforth, advertisers offering Contracts for Difference (CFDs), spread betting, and financial spread betting will need to be members of the FCA to use Google Ads. Cryptocurrency exchanges and wallet providers are not excluded from this requirement. The rule applies to both companies from within and outside the UK, who target their advertisements at UK consumers.
Google’s Efforts to Enhance Trust
This policy change is part of Google’s commitment to fostering trust in ads by ensuring that they come from authorized and regulated entities. This will also protect consumers from potential scams and fraud, which have become increasingly common in the cryptocurrency world.
The exact date when these changes will take effect has not been specified, but Google has indicated it will be in August 2021. Advertisers failing to adhere to the new requirements will face enforcement actions, including suspension of their ad accounts.
FCA’s Stance on Crypto Regulation
The FCA is among the world’s leading regulators that have sought to establish strict rules to govern the rapidly growing cryptocurrency sector. The authority has been keen to ensure that crypto firms operating in the UK adhere to anti-money laundering (AML) laws, counter-terrorism financing rules, and adhere to standards that promote integrity and transparency in the market.
In January 2021, the FCA issued a warning to consumers about the risk of investments in and lending through crypto-assets, such as Bitcoin. The statement pointed out the potential for consumer harm from sudden and unexpected losses if they invest in crypto products.
Impact on Crypto Businesses
This new policy requirement by Google marks an increase in regulatory scrutiny for crypto-focused businesses, especially those that use online advertising to reach their audiences. It may result in the need for these firms to make adjustments in their operations to comply with the new rules.
For consumers and investors, the changes will likely result in greater transparency and accountability from ads promoting cryptocurrency exchanges and wallets. It could also potentially reduce the number of scams and fraudulent schemes that leverage these platforms.
Conclusion
In conclusion, Google’s recent policy update requiring FCA certification for cryptocurrency firms using Google Ads, shows a sign of the increasing global regulatory oversight on the crypto industry. Its ramifications are likely to have a profound impact not only on crypto firms but also on consumers who rely on these platforms for their crypto transactions.
