Google has unveiled a new policy update mandating advertisers for digital asset exchanges and wallets in the UK to register with the Financial Conduct Authority (FCA) before promoting their services on its platform.
The policy, aimed at bolstering consumer protection, will come into effect on 15 January 2025, the tech giant announced.
FCA Registration Now Mandatory for Crypto Ads
Under the updated guidelines, advertisers providing crypto exchange services or software wallets must meet stringent conditions to run campaigns in the UK.
Central to these requirements is FCA registration, ensuring adherence to the country’s financial regulations.
Google will also permit ads for hardware wallets, which store cryptocurrency private keys and digital assets such as non-fungible tokens (NFTs).
However, providers of hardware wallets are prohibited from offering additional services, including buying, selling, or trading digital assets.
The company stressed the importance of compliance with local laws for all advertisements, regardless of location. “This policy will apply globally to all accounts advertising financial products,” Google stated.
Regulatory Scrutiny on the Rise
Google’s stricter advertising policies highlight the increasing global scrutiny of crypto-related promotions as regulators seek to curb misleading advertisements.
In the UK, the FCA recently flagged the Solana-based memecoin and NFT project “Retardio” for unauthorised promotions targeting local consumers. The regulator warned that investors might face financial risks from such projects.
Elsewhere, Nigeria’s Securities and Exchange Commission (SEC) has introduced its own set of regulations, requiring virtual asset service providers and influencers to secure official approval before publishing promotional materials.
Fake Crypto Ads on Google Exposed
The policy change comes amidst a surge in fraudulent crypto advertisements on Google’s platform. In one case, a Google ad posed as a link to Sony’s blockchain project, Soneium, but redirected users to a phishing site designed to drain cryptocurrency wallets.
In another incident, a fake cryptocurrency wallet app named WalletConnect, masquerading as the legitimate WalletConnect protocol, scammed users out of $70,000.
The malicious app was downloaded by over 10,000 users before being exposed by Check Point Research (CPR).
Protecting Consumers in a Rapidly Evolving Sector
The new advertising policies underscore Google’s efforts to align with regulators and enhance consumer protection in the rapidly evolving crypto space.
Advertisers are urged to ensure full compliance to maintain trust and transparency while promoting digital asset products.
For crypto advertisers in the UK, the FCA registration deadline is fast approaching, marking a significant step in the regulation of the industry.
