Will crypto trading be affected by the ad restriction?
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Binance CEO Changpeng Zhao stated that word of mouth is the most effective way of marketing the crypto market. Therefore, restricting crypto-related ads will not affect the demand for cryptocurrency trading. Previously, in an interview with CNBC, CZ emphasized that physical crypto advertising and crypto advertising, in general, did not impact user growth. It only became popular in the past few years. Most crypto adoption comes from “word of mouth” marketing.
Changpeng Zhao also said that electronic money had not been used advertising on Google or Facebook for a long time. So obviously, advertising doesn’t play a significant role in trading crypto. He went on to add that the role of advertising in crypto exchanges is not so substantial right now. He even thinks that advertising restrictions also increase the demand for buying and selling cryptocurrencies. So curbing crypto advertising is unlikely to have much of an impact on the development of cryptocurrencies. Cryptocurrency exchangers know about cryptocurrency promotions through word of mouth and banner ads on the official websites of exchanges.
Actions by countries on restricting cryptocurrency advertising
The Binance CEO remains very upbeat and confident as many countries have implemented some limited crypto-related activity in the past few weeks. Singapore recently issued new guidelines on promoting cryptocurrencies in public spaces. The Monetary Authority of Singapore currently does not allow crypto ATMs.
The UK’s advertising watchdog also has measures in place to limit advertising of cryptocurrencies that could be misleading. Specifically, the agency restricted two ads on Crypto.com’s popular cryptocurrency trading platform. In addition, the Spanish government is also looking to introduce new regulations for cryptocurrency advertisements.
Many regulatory agencies have expressed concern that cryptocurrency advertisements may mislead the public. Traders need to be clear about the risks besides trading cryptocurrencies’ benefits. Another reason authorities need to tighten the regulation of cryptocurrencies is the lack of clarity regarding cryptocurrency regulations in most countries. This is also the reason why cryptocurrency advertising becomes more complicated for regulators.
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