Google banned DeFi from advertising on its platform, what should we do now?
- Go to financial institution The new advertising policy that Google will start to implement in August will hit Google the most.
- new policy Advertisers who promote cryptocurrency transactions and wallets will be accepted, provided they meet certain criteria.
- This new development will have a serious impact on small DeFi startups that want to reach a wider audience.
- One of the main reasons for the ban may be the very unregulated scenario of decentralized finance and the resulting scam.
From August 3rd, Google’s new advertising policy will take effect. The new policy has changed the pattern of cryptocurrency advertising on the world’s largest search engine. Cryptocurrency exchanges and wallets may advertise on Google (NASDAQ:), but they must meet several requirements before they can do so.
Google prohibits advertising on the DeFi protocol and advertising on the token liquidity pool. This move puts the new DeFi agreement into trouble, and the old agreement itself must be subtly adapted to the new regulatory system.
Google DeFi ban
Google has opened the door to various cryptocurrency advertisements through its new policy on financial products and services. However, there is a problem because it requires advertisements from exchanges and wallets to meet certain criteria.
The exchange or wallet in question should be officially registered as a money service business with FinCEN and registered with a federal or state chartered banking entity. Advertisers must also fully comply with local legal requirements and be certified by Google’s cryptocurrency exchange and wallet.
Despite Google’s milestone achievements, DeFi has been evaded because the new rules completely exclude it from any form of advertising. DeFi trading protocols, initial DEX products, token liquidity pools, and unregulated dApps are also completely banned.
Other prohibited advertisements include cryptocurrency trading signals and investment advice. It is worth noting that Google made it clear that the list is not exhaustive.
Impact on DeFi
DeFi is growing rapidly and is closing the gap between it and TradFi. The market value of DeFi has reached US$80.2 billion. In recent months, DeFi protocols such as Uniswap, Terra, Aave and PancakeSwap have gained tremendous appeal.
DeFi’s complete ban on the use of Google’s advertising may stifle the growth of new agreements in the industry that are just starting, and the potential impact of these agreements in attracting new users will be severely limited. However, by using innovative marketing strategies, they can once again lean in their favourable direction.
For the major players in DeFi, their established dominance in the field may lessen the impact of Google’s decision. They may face some challenges when promoting their new services, but given their advantages as first movers, they have countless ways to circumvent this problem.
on the other hand
- While Google is hesitant to accept DeFi, the rest of the world is moving towards the future of DeFi.
- The newest wave of DeFi acceptance is Goldman Sachs (NYSE:), who submitted an application to the US Securities and Exchange Commission DeFi is linked to ETF.
What could be the reason for Google’s DeFi ban
Google’s exclusion of DeFi from the cryptocurrency party may be due to the widely unregulated nature of decentralized finance. Because it is not regulated, it provides opportunities for fraud and criminal hackers.
In 2021, DeFi has already encountered a wave of attacks such as the Yearn Finance flash loan attack and the Alpha Homora Iron Bank attack. There is also a high incidence of “carpet pulling” incidents, which may be the reason why Google decided to completely ban DeFi.
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