Google is set to implement more stringent advertising guidelines for cryptocurrency services in Europe, aligned with the Markets in Crypto-Assets (MiCA) framework, as detailed in a recent policy update from the company.
This shift could represent a “double-edged sword” for regulation; while it aims to curb fraudulent activities associated with initial coin offerings (ICOs), it also risks creating additional gaps in enforcement, according to legal experts.
Beginning on April 23, advertising for cryptocurrency exchanges and wallet services in Europe will require licensing under the MiCA framework or the Crypto Asset Service Provider (CASP) regulations.
Advertisers in the crypto space on Google will also need to adhere to “local legal requirements,” which may entail “national-level restrictions or obligations beyond MiCA” and must be “certified by Google,” according to a policy announcement from March 24.
These new advertising rules will apply across numerous European nations, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Violations of this policy will not result in immediate account suspensions; instead, a warning will be issued at least seven days prior to any account suspension, according to the updated policy.
This change comes in light of the MiCA framework’s implementation in December 2024, which established the first extensive regulatory framework for digital assets within the European Union.
### Google’s Policy Viewed as a Double-Edged Sword
The updated cryptocurrency advertising requirements from Google are seen as a “double-edged sword” for regulatory measures, according to the chief legal officer at a major crypto exchange.
“On one hand, they bolster investor protection by filtering out unregulated participants,” he stated.
“The stringent AML/CFT and transparency criteria of the MiCA framework foster a safer environment, reducing the prevalence of scams, such as ICO frauds that undermined the industry before 2023,” he added.
However, he cautioned that this approach could become “overly restrictive” if not implemented with flexibility, particularly as transition periods for national licensing differ across various jurisdictions.
Due to the variability of Google’s transition period for national licenses by country, this could give rise to “temporary enforcement gaps” and significant compliance cost challenges. He remarked that smaller exchanges may find it difficult to meet MiCA’s capital requirements (ranging from 15,000 to 150,000 euros) or contend with the bureaucratic hurdles of obtaining dual certification from both Google and local regulators. These measures may enhance trust, but flexibility is crucial to avoid hampering innovation.
Other industry analysts believe that this change does not significantly alter Google’s role or the level of investor protection.
The modifications may be more driven by a desire to “shield Google from liability rather than genuinely protecting investors,” stated the general counsel of a decentralized blockchain network.
“The real effects of this policy adjustment will depend heavily on the actual regulations in place. If the MiCA or CASP registration process proves to be cumbersome, costly, and accessible primarily to larger entities, smaller players may find it exceedingly challenging to compete in these markets,” he noted.