Google to update ad policy for ‘Crypto Trusts’ ahead of anticipated ETF approvals

Google is set to update its Cryptocurrencies and related products policy in January 2024, explicitly clarifying regulations for the advertisement of Cryptocurrency Coin Trusts. This change, effective from Jan. 29, 2024, will allow advertisers in the United States to promote Cryptocurrency Coin Trusts, given they meet specific criteria and obtain certification from Google.

Cryptocurrency Coin Trusts, as defined by Google, are financial products enabling investors to trade shares in trusts holding extensive digital currency pools. Google asserts that this policy revision emphasizes ongoing commitment to ensuring advertisers abide by local laws in their target areas. However, the change seems particularly timely given the anticipation of a wave of spot Bitcoin ETFs awaiting approval. The new policy will be implemented globally, impacting all accounts advertising these products.

Google’s current policy on crypto advertising.

The background context of Google’s policy on cryptocurrencies and related products highlights its goal to provide users with sufficient information for informed financial decisions. The policy encompasses management and investment in money and cryptocurrencies, including personalized advice. Advertisers must comply with regional regulations and conduct their research into local laws.

Google’s stance reflects the evolving nature of online advertising and regulatory spaces, where policy updates are anticipated as new product-specific guidelines emerge. The policy stipulates that violations will be preceded by at least a 7-day warning before account suspension, emphasizing a fair approach to enforcement.

In addition to Cryptocurrency Coin Trusts, Google’s policy outlines specific allowances and restrictions in cryptocurrencies and related services. This includes permissible advertising for businesses not directly involved in purchasing, holding, or exchanging cryptocurrencies, subject to other Google Ads policies. Examples include businesses accepting cryptocurrency payments, cryptocurrency mining hardware, and educational materials.

However, Google strictly regulates the promotion of NFT games and cryptocurrency products. Certain blockchain-based games involving NFTs are allowed, provided they comply with local laws and industry standards. On the contrary, games involving wagering or staking NFTs for real-world value, social casino games rewarding NFTs, and real money gambling destinations incorporating NFTs are prohibited.

Hardware wallets that hold private keys for cryptocurrencies and NFTs are permissible for advertising under specific conditions. The policy also details the requirements for advertising cryptocurrency exchanges and software wallets, stressing the necessity for licensure and adherence to local laws and industry standards.

In contrast, the policy explicitly bans advertisements for initial coin offerings, DeFi trading protocols, and promoting the purchase, sale, or trade of cryptocurrencies or related products. This includes ICO pre-sales, cryptocurrency loans, initial DEX offerings, token liquidity pools, unhosted software wallets, and unregulated DApps. Additionally, ad destinations aggregating or comparing issuers of cryptocurrencies or related products are not allowed.

Google’s updated policy on Cryptocurrencies and related products reflects a cautious yet evolving approach to the dynamic domain of digital finance, along with its ability to adapt to facilitate major players such as BlackRock, Fidelity, and VanEck.