- Starting April 23, Google will apply EU MiCA crypto ad rules requiring authorized firms and clearer disclosures to better protect and increase transparency.
- The policy is targeted at 30 countries, which include Germany, France, and Spain, though some nations were given a transition period where ongoing licenses would be accepted.
Google will enforce a new policy restricting cryptocurrency advertisements in the European Union (EU) to firms licensed under the Markets in Crypto-Assets (MiCA), the unified legal framework to regulate crypto-assets in the European Union, or registered as Crypto Asset Service Providers (CASPs).
According to the announcement, the policy will apply to the following EU countries: Austria, Belgium, Slovakia, Slovenia, Bulgaria, Croatia, Ireland, Italy, Latvia, Lithuania, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Spain, and Sweden.
Key Requirements for Crypto Advertisers
To advertise cryptocurrency exchanges and software wallets within the European Union, advertisers must meet several key requirements. First, they need to be licensed as a Crypto-Asset Service Provider under the MiCA regulation by a relevant national competent authority. Additionally, they must comply with all applicable local legal obligations, including any national-level rules or restrictions that go beyond the MiCA framework. On top of this, advertisers are also required to be certified by Google before running any ads.
Google has set a transition period for country-based licenses in Finland, France, and Germany, where such national authorizations are currently accepted. During these transitional periods, licenses issued by the respective national authorities will remain valid in accordance with Article 143(3) of the Regulation. Specifically, the deadlines are June 30, 2025, for Finland; June 30, 2026, for France; and December 30, 2025, for Germany. During this period, advertisers with valid national licenses will be allowed to continue promoting their crypto services through Google until the respective deadlines are reached.
Impact on Smaller Firms and Crypto Warnings
Though the policy enhances protection of investors and tries to reduce scams and unregulated activity, it is unsuitable for small companies. The majority of such firms may not be capable of supporting the capital requirements of the MiCA framework, which vary from €15,000 to €150,000.
In addition, the double certification requirement by Google and national governments adds another bureaucratic burden that might further overwhelm new players in the crypto space. From an enforcement point of view, Google confirmed that policy violations will not immediately result in suspended accounts.
This comes on the heels of ongoing concerns that have been voiced by the European Securities and Markets Authority (ESMA). On April 8, ESMA executive director Natasha Cazenave reaffirmed to the European Parliament that the accelerated expansion of the crypto space and its growing link to traditional finance pose potential systemic risks.
Though more than 95% of the EU banks are yet to be active in crypto markets, ESMA still calls for prudence and adherence to rigorous MiCA rules, especially as enforcement on a full scale comes into effect in 2025.
