Google is set to impose stricter regulations on crypto advertising across Europe, beginning April 23. Under the new guidelines, only cryptocurrency exchanges and wallet applications that possess a license under the European Union’s Markets in Crypto-Assets (MiCA) framework will be permitted to run ads on Google’s platforms.
Google Tightens Crypto Advertising Rules
Recent reports suggest that as part of this initiative, any crypto firm that is not fully registered under MiCA or does not complete Google’s own certification process will find its advertising capabilities severely restricted.
This marks a substantial tightening of Google’s advertising policies, which will now require compliance with both MiCA regulations and Google’s internal standards to maintain advertising access across all 27 European Union member states.
Google’s approach includes a grace period for non-compliant advertisers. Instead of enforcing an immediate ban, the company will provide warnings at least seven days prior to any suspension of advertising privileges.
This temporary reprieve may allow some firms to adjust and achieve compliance in time, but the new requirements clearly signal a higher bar for entry into the advertising market.
Currently, there is a short-term exemption for platforms that are already operating under national licenses in countries such as France, Germany, and Finland. These licenses will remain valid until the transition period to MiCA concludes, which is expected to occur between mid and late 2025.
However, the long-term landscape indicates that the days of navigating compliance through various national regulations are numbered, as MiCA seeks to standardize crypto asset regulations across the EU.
Wall Street Optimistic On Google Stock
Several cryptocurrency exchanges, including OKX, Crypto.com, Bitpanda, Boerse Stuttgart Digital, eToro, and MoonPay, have already secured their MiCA licenses, positioning themselves favorably under the new regulatory framework.
However, smaller firms may face significant challenges in meeting these new compliance standards, potentially limiting their advertising reach.
In the broader context, Google’s parent company, Alphabet, is becoming increasingly integrated into the cryptocurrency sector. The company’s stock has experienced a notable rise, up over 12% year-to-date, buoyed by strong performance in artificial intelligence and advertising revenues.
Additionally, Google Cloud’s partnership with Coinbase has opened avenues for Web3 services, while the company has also invested in blockchain startups like Fireblocks and Dapper Labs.
Market analysts suggest that this strategic pivot may help Alphabet avoid future regulatory scrutiny, despite concerns that limiting advertising could impact short-term revenue from smaller exchanges.
Nevertheless, Wall Street remains optimistic about Google’s stock. Of the 37 analysts covering GOOGL, 27 recommend a Buy, while 10 suggest holding the stock. The average price target for GOOGL stands at $204.09 per share, indicating a potential upside of 29% from its current trading price.
Featured image from DALL-E, chart from TradingView.com
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