Google Allow Ads for Crypto Trusts in the US #GoogleCrypto
Tech giant Google has updated its advertising policy, allowing certain Bitcoin and cryptocurrency trust products to be advertised on its platform for the first time. This marks a significant shift in the company's stance on crypto, which previously banned all related ads due to concerns about consumer protection and market volatility.
Google has announced a major update to its advertising policy regarding cryptocurrency and related products. Starting from January 29, 2024, Google will allow advertisers to promote cryptocurrency coin trusts in the United States, as long as they meet certain requirements and obtain certification from Google.
Cryptocurrency coin trusts are financial products that enable investors to trade shares in trusts that hold large pools of digital currency. Examples of such products include Grayscale Bitcoin Trust (GBTC) and Osprey Bitcoin Trust (OBTC), which are both traded on the OTC markets.
According to Google, the policy update aims to provide clarity and compliance for the advertisement of cryptocurrency coin trusts, which are subject to local laws and regulations. Advertisers will need to undergo a verification process and demonstrate that they have a clean track record and comply with relevant legal requirements.
Google's policy update comes amid growing interest and demand for cryptocurrency products, especially in the US. The Securities and Exchange Commission (SEC) is expected to make a decision on the approval of a spot Bitcoin exchange-traded fund (ETF) by January 10, 2024, which could open the door for more mainstream adoption of Bitcoin and other digital assets.
The new policy specifically permits advertising for "Cryptocurrency Coin Trusts" targeting the United States. These trusts are regulated financial products that hold large pools of cryptocurrency, allowing investors to trade shares in them without directly owning the digital assets. Notably, the policy does not extend to advertising for individual cryptocurrencies, cryptocurrency exchanges, or other crypto-related products.
Several key requirements must be met by advertisers under the new policy:
Registration: Advertisers must be registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business and either hold state-level money transmitter licenses or be chartered banks.
Compliance: All advertisements must comply with Google's general advertising policies as well as all applicable local laws and regulations.
Transparency: Ads must be clear, truthful, and not misleading, and they must prominently disclose the risks associated with investing in cryptocurrency.
The policy change has been met with mixed reactions from the crypto community. Some see it as a positive step towards mainstream adoption, while others remain cautious about the potential for manipulation and exploitation. Google's commitment to enforcing its compliance requirements will be closely watched in the coming months.
Google's policy update also follows a similar move by Facebook, which relaxed its ban on cryptocurrency ads in June 2023, allowing some advertisers to promote crypto-related content on its platform. Google's policy update will take effect globally, but will only apply to cryptocurrency coin trusts targeting the US market. Google warns that any violations of the policy will result in a warning and possible account suspension.
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