Google will begin to enforce new cryptocurrency advertising rules according to the MiCA framework, significantly affecting the EU market.
Strict Standards for Crypto Advertising
Under the new requirements, all advertising materials related to cryptocurrencies must comply with MiCA standards and local laws. EU countries like France, Germany, and Finland will participate in the licensing process. Google aims to align with regulations that will come into effect in December 2024.
Market Impact and Competition
The new rules can lead to market consolidation and reinforce the positions of larger players. Compliance with MiCA licensing will require significant financial expenditures, potentially limiting access for smaller companies and reducing market diversity. In the past, regulatory measures like the Facebook crypto ad ban in 2018 had temporary effects on price dynamics and market volumes.
Expert Opinions on New Rules
Experts see positive aspects of the new rules for investor protection but highlight that the costs associated with licensing may be challenging for smaller players. "These new rules filter out unregulated players, which boosts investor protection. However, the costs will likely squeeze out smaller firms," said Hon Ng, Chief Legal Officer at Bitget.
Google is adapting its practices to comply with new MiCA requirements, which may have long-term effects on the competitive landscape of the cryptocurrency market in Europe.
