In a bid to curb fraudulent practices and regulate online crypto advertisement within Europe, Google has announced a new policy, set to take effect on April 23. According to this change, cryptocurrency exchanges and crypto wallet advertisers operating in European countries will need to be licensed under the Markets in Crypto-Assets (MiCA) or Crypto Asset Service Provider (CASP) regulations. In addition to these, advertisers must adhere to local legal requirements and be certified by Google.
However, this policy shift is viewed as a “double-edged sword” considering the potential implications it holds. Bitget’s legal officer, Hon Ng, sees the new Google rule as amplifying investor protection by sidelining unregulated industry players. He believes the stringent Anti-Money Laundering / Counter Financing of Terrorism (AML/CFT) and transparency requirements of the MiCA framework will reduce scams, mainly those associated with ICO frauds within the industry.
Despite the ideal expectation of a safer digital asset ecosystem, there are concerns over achieving the right balance in its implementation. With transition periods for obtaining local licensing differing in various jurisdictions, the policy’s uniform application may not be feasible. Ng suggests room for flexibility, highlighting the potential enforcement gaps and compliance costs that could hinder smaller exchanges grappling with MiCA’s capital requirements or achieving dual certification from Google and local regulators.
Meanwhile, Mattan Erder from the layer-3 decentralized blockchain network, Orbs, perceives this change more as a means of Google shielding itself from legal liabilities, rather than protecting investors. He notes that the policies’ impact will be more evident downstream, once the actual burden of MiCA or CASP registration becomes clear. Erder predicts that the costly and complex registration process might stifle competition, especially amongst smaller industry players in these regulated jurisdictions.