03 Jun 2021 Josphat Kariuki
Google Now Allows Crypto Exchange And Wallet Advertisements
Search engine and online advertising giant Google made a surprising move on June 2, allowing companies that have cleared rigorous regulatory hurdles to join Google’s ad program.
The move is essentially lifting a three-year-old ban on crypto exchange and wallet service advertising. In June 2018, the search engine banned crypto ads on its network, citing the ban implies to “cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice).”
However, three years after the crypto ban, Google seems to have changed its mind. “Beginning August 3, advertisers offering Cryptocurrency Exchanges and Wallets targeting the United States may advertise those products and services when they meet the requirements and are certified by Google,” the company noted.
Meanwhile, the company explained that companies need to be regulatory approved by “FinCEN as a Money Services Business and with at least one state as a money transmitter” or “a federal or state-chartered bank entity.” This means projects like Paxos and BlockFi will be able to place crypto-related ads on Google Ads.
The ban, however, is still in operation for the vast majority of crypto projects, as “ads for initial coin offerings, DeFi trading protocols, or otherwise promoting the purchase, sale, or trade of cryptocurrencies or related products” remain prohibited under the new policy change. The ban also prohibits crypto-related advertisements from news outlets, data aggregators, and analysis services.
The ban lift means that US-based crypto exchanges and wallet service providers would soon battle for ad market share. Crypto exchange giants like Binance.US and FTX are already battling for the upper hand. FTX, however, is going the extra mile and started using unconventional advertising practices.
For example, earlier this year, FTX announced that the exchange bought the naming rights to the home of the National Basketball Association’s Miami Heat until 2040, soon renaming it to FTX Arena.
“This opportunity is more than putting our name on an iconic building. It is a chance to provide value to the growing and diverse community in Miami and its surrounding cities, as well as join a championship community, a championship organization, and a championship culture,” FTX CEO Sam Bankman-Fried noted.
This is the latest from a batch of expansion activities for FTX, as the exchange recently acquired the portfolio tracker Blockfolio for $150 million in August 2020. Furthermore, FTX managed to list five tokenized versions of mainstream stocks to attract a broader market. The exchange also listed a r/Wallstreetbets index of several assets such Doge, AMC Entertainment (AMC), and GameStop (GME), after reported controversy surrounding retail investors from Reddit channel r/Wallstreetbets and trading platform Robinhood.
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