Starting April 23, Google (NASDAQ: GOOGL) will apply new rules regarding digital asset advertising in the European Union, restricting promotions to licensed digital asset firms in accordance with the EU’s recently implemented Markets in Crypto-Assets (MiCA) regulation.
According to a March 25 policy update, Google announced that those wishing to advertise digital asset exchanges and software wallets in the EU would soon need to be licensed as a Crypto-Asset Service Provider (CASP) under MiCA regulation by a “relevant national competent authority”; compliant with all other local legal requirements, including any national-level restrictions or requirements beyond MiCA; and certified by Google.
MiCA is the landmark digital asset regulatory framework passed by the EU in April 2023, bringing a host of new rules tailored to the sector. The framework was designed to come into force gradually, with the rules relating to stablecoins taking effect in June 2024, followed by the remaining rules related to Crypto-Asset Service Providers (CASPs) coming into force in December last year.
Per the new rules, all advertising related to digital asset exchanges or wallets must originate from entities registered under the MiCA or CASP regime. In addition, advertisers will need to meet all “local requirements,” including additional national rules, beyond the MiCA framework.
This policy will apply to nearly all countries in the EU, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
After the rules officially came into effect last December, EU member states were given a grace period before they must begin to implement and enforce them. The timelines vary, with most countries given until April 23, while certain countries, including Finland, France, and Germany, are subject to additional transitional periods during which existing national licensing regimes will remain valid.
Finland-based digital asset firms may continue advertising on non-MiCA “country-based licenses” until June 30, 2025, while firms in France are covered until June 30, 2026. Meanwhile, Germany’s transition window extends until December 30, 2025.
Google, whose share of worldwide advertising revenue was projected to amount to 39% in 2023, confirmed it would recognize these country-based licenses during the respective transition periods.
Enforcement of the rules will be “strict,” but the tech giant said that “violations of this policy won’t lead to immediate account suspension without prior warning.” Instead, Google said it would issue a warning at least seven days before any suspension of accounts.
Several digital asset exchanges have already secured a MiCA license to operate and promote their operations in the EU, including OKX, 21X, Crypto.com, Bitpanda, and Boerse Stuttgart Digital.
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Source: https://coingeek.com/google-restricts-digital-asset-ads-in-eu-to-mica-licensed-firms/