In 2022 We Still Have Crypto Ads Crackdowns

Shortly after the 2017-2018 Bitcoin rally, major advertising platforms followed up with a crackdown on crypto ads. So, for the first time since the inception of cryptocurrency, social media and advertising have become hostile to cryptocurrency and blockchain content.

While not commendable, the ban on crypto ads was understandable. How? Well, 78% of the ICOs done in 2017 were identified as scams. And in this situation, it is not surprising that the social media giants and their advertising platforms have gone to great lengths to distance themselves from danger.

As a result, Facebook announced in a blog post in January 2018 that it would ban "deceptive or misleading advertising practices", focusing on ICOs and cryptocurrencies. Google followed suit in March, announcing that the AdWords platform (now Google Ads) would officially ban all crypto-related ads starting in June. In the same month, Twitter and LinkedIn also decided to ban all crypto-related ads.

However, over time, cryptocurrency bans have been gradually eased. And since the entire cryptocurrency industry has experienced great development in recent years, traditional advertising platforms have become more open to cryptocurrency projects.

However, despite the ongoing bull market, we see more of a government crackdown on crypto advertising in 2022.

Crypto ad attacks

Spain

The National Securities Market Commission (CNMV) of Spain has cracked down on cryptocurrency ads. According to the Financial Times, Spain has introduced new rules for cryptocurrency companies, marketing companies hired by these companies and influencers.

That is, cryptocurrency advertising must be clear, balanced, impartial and not misleading and indicate the risks of investing in cryptocurrencies. In addition, influencers promoting cryptocurrencies must declare whether they received payment for the promotion. In addition, influencers and media with more than 100,000 followers in Spain who want to start crypto advertising campaigns must notify the CNMV at least ten days in advance.

Failure to comply can result in a fine of up to €300,000 ($342,000).

As Spain announced, this new directive is expected to enter into force on February 17.

Singapore

The Monetary Authority of Singapore (MAS) released a document titled "Guidelines on the Provision of Digital Payment Proof Services to the Public [PS-G02]" on 17 January.

The gist of the document is that crypto businesses should not offer DPT cryptocurrency trading in a way that downplays the high risks of DPT trading and should not advertise their DPT services in public areas of Singapore or through other public means not. in Singapore.

Also, cryptocurrency companies can only promote their services on their website, mobile apps or official social media accounts. These companies should also not use social media influencers to promote their services.

The United Kingdom

On January 12, the United Kingdom also ordered a crackdown on encrypted advertising. The Advertising Standards Authority has ruled against crypto ads posted by Crypto.com, Coinbase, Papa John's, Arsenal Football Club, eToro, Coinburp, EXMO, Luno and Kraken.

The British regulator made the decisions, reiterating that crypto-assets are a "red flag" priority and based on proactive monitoring of advertising. These decisions are also part of an ongoing project aimed at formulating specific guidelines for running encrypted advertising campaigns in 2022.

Advertising Platform Restrictions

The best known and most used advertising platforms come from Google, Facebook and Twitter. Although advertising giants quickly banned cryptocurrencies in 2018, many advertising restrictions related to cryptocurrencies have been lifted.

However, when it comes to Google, you still have to meet the requirements and go through the application process. Later, you can use Google search ads and see the ads under certain conditions. And of course, ICOs or the promotion of coins and tokens are still prohibited.

Facebook has also lifted most of its restrictions on cryptocurrencies. Now Facebook ads will ask you to verify your permission to post cryptocurrency ads. However, as of Q3 and Q4 2021, Facebook's promotional stance towards cryptocurrencies is quite difficult to understand as we see more and more shady tokens being promoted on the platform.

Similar to Twitter ads, cryptocurrency ads are restricted but can target countries like Australia, Argentina, Brazil, Canada, India, Japan, Malaysia, Mexico, the Philippines, Singapore, Thailand, and the United States.

But outside the guidelines of these platforms, regulators are taking steps to define what can and cannot appear in a cryptocurrency ad.

And here we have:

• Papa John's advert was posted on both its website and Twitter page and read: "£10 FREE BITCOIN" and "Save £15 when you spend £30 or more and £10 worth of bitcoin." received from Luna!
• Coinbase's Facebook ad included text that read: “£5 worth of #Bitcoin in 2010 would be worth over £100,000 in January 2021. Don't miss out on the next decade - get started with Coinbase today.
• Arsenal FC posted on their Facebook page promoting the $AFC fan token and created a webpage for the same purpose. The feature included: $AFC Live Now $CHZ" and "Ben White, Calum Chambers and Kieran Tierney all spoke... But what song do you want to hear if we win? Download the Socios app to get your token and vote. Titled "$AFC Fan Token: Everything You Need To Know", the web page contained information explaining what Arsenal Fan Token was and what benefits it offered, as well as text in the address at the bottom that read: "To buy an Arsenal Fan Token buy Token $AFC fan, you need to buy Chiliz cryptocurrency. Remember that the future value of the fan tokens depends on supply and demand and therefore may increase or decrease. Fans should be aware that they may lose some or all of the money invested. Our advice is to only spend what you can afford and to seek independent financial advice if necessary.

The examples above are just some of the ads ruled by the UK Advertising Standards Board, although they appear to have followed the platforms' guidelines. And the common thread among the bans is that the ASA felt the ads trivialized cryptocurrency investments, exploited consumers' inexperience or gullibility, and failed to explain the risk of investing.

Use Coinzilla Crypto Ads

Although change is inconvenient, regulation is a good thing that happens to cryptocurrencies when you look at it from a broader perspective.

The authorities have stopped ignoring the industry and have realized that they need to adopt regulatory frameworks. Ultimately, this provides room for growth in the digital cryptocurrency marketing industry.

And with the political and legal attention it's attracting, we can't help but hope that the cryptocurrency industry will soon rid itself of bad players, allowing more and more investors to take advantage of the opportunities the market has to offer. to explore.

With respect to these regulations, the Coinzilla Legal Department closely monitors the development of these policies and initiatives to ensure safe advertising.

You can also always count on the support of our account managers when promoting your cryptocurrency project.

The central theses

• In 2022, regulators will take the lead in publishing guidelines for the promotion of cryptocurrencies.
• Since January 2022, the biggest crackdown on crypto ads has come from Spain, Singapore, and the United Kingdom.
• While advertisers can use traditional advertising platforms to some extent to promote their crypto businesses, that doesn't mean they won't come under fire from regulators who find loopholes in their ads.
• Regarding these regulations, the Coinzilla Legal Department closely monitors the development of these policies and initiatives so that we can ensure safe advertising.

Featured Image: richads.com/blog/

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