Crypto advertising regulations have been a hot topic of discussion in many countries recently. Some have implemented stricter guidelines concerning ads in this sector. In our latest article, we outline the crypto advertising regulations in Europe.
With extensive experience in banner ads and various promotional methods, Cointraffic is prepared to assist you in navigating regulations across different countries by providing tailored solutions for each specific case.
The UK, Spain, and Belgium have recently tightened their rules governing crypto marketing. Advertisers in these nations will face challenges in promoting their campaigns.
In Belgium, campaigns promoting digital currencies must be submitted to the Financial Services and Markets Authority (FSMA) at least 10 days in advance. This advance notice allows the regulatory body to intervene if necessary. Additionally, the new guidelines require that ads include a statement warning customers about the risks involved in crypto investments.
In Spain, any company advertising crypto assets must notify the Comisión Nacional del Mercado de Valores (CNMV) at least 10 days prior to launching a campaign targeting an audience of 100,000 people or more. This rule also applies when partnering with social media influencers who have over 100,000 followers. Ads must also include risk warnings regarding the assets being promoted.
The United Kingdom
New crypto marketing regulations in the UK will take effect on October 8, 2023. Crypto companies will be required to caution customers that they should not expect investment protection if things go awry. Additionally, a "cooling-off" period will be imposed for first-time investors. The Financial Conduct Authority (FCA) has also ruled that "refer a friend" bonuses for crypto purchases will be discontinued, and companies must display clear risk warnings in their ads to ensure they are transparent, fair, and not misleading.
Regulations in Social Media & Alternatives
Social media platforms like Facebook and Twitter have banned ads for initial coin offerings (ICOs) and certain cryptocurrency-related products and services. Google, too, banned cryptocurrency ads in 2018 but later relaxed the ban for regulated exchanges in the US and Japan.
In light of these restrictions, some companies have shifted to alternative marketing strategies such as influencer marketing and targeted email campaigns. Others, like Cointraffic, have opted for niche platforms specifically catering to the crypto community.
In conclusion, regulations in the crypto industry are continually evolving. It is crucial for businesses to stay informed about the latest regulatory developments to ensure compliance and avert potential legal complications.