Crypto Leaders Say Ad Restrictions Won’t Affect Crypto• January 20, 2022 5:07 pm • Comments
In recent months, the explosive growth of the blockchain and cryptocurrency industry has also met a lot of push back as many governments aimed to restrict the advertising or marketing of crypto related services.
Binance CEO and founder, Changpeng Zhao, stated that ad restrictions will not make a difference to the growth of the industry because the industry never really relied on marketing in the first place to grow.
The founder of the largest crypto exchange explained that much of the growth within crypto came from word of mouth marketing and that most of the marketing efforts only came out recently in the past couple of years.
In previous years, platforms such as Facebook and Google had already banned crypto-related ads and it is clear that these bans had no major effect at all.
Changpeng Zhao said that the majority of crypto demand and user adoption come from word-of-mouth marketing. #Binance CEO Changpeng…
— Ƀitsell X (@BitsellX) January 20, 2022
He went on to add that the series of regulatory clampdowns on crypto ads only shows the growing demand. CZ said:
“Clampdown on crypto advertising is unlikely to have much of an effect on demand, as most of the crypto users come from word-of-mouth promotions anyway.”The CEO’s comments come amid the growing restrictions and slew of actions taken by various countries over the past few weeks.
Singapore recently issued new guidelines for crypto companies, prohibiting crypto advertising in public spaces.
The Monetary Authority of Singapore also barred crypto service providers from opening crypto ATMs.
Following this ruling, several crypto ATMs in the country have shut down.
United Kingdom advertisement watchdog Advertising Standards Authority also continued its crackdown on misleading crypto advertisements as it banned two ads from popular crypto trading platform Crypto.com.
The Spanish government, on the other hand, is also looking to bring new regulations for crypto advertisements.
It is reported that the main reason why regulators are keen on restricting crypto ads is because they can be misleading and often advertise big returns while not highlighting the inherent risks.
Additionally, the general public is often unaware or is not educated about the details of crypto and is therefore more susceptible to scams or fraud.
In more recent news, the newly introduced Indian Crypto Bill, aims to ban crypto promotions from exchanges and other projects.
The UK is also continuing on cracking down rapid and viral marketing where crypto advertisements were done in the form of posters that bombarded entire streets in the country.
Crypto founders, in response, are saying that these events are happening indicate how the demand of cryptocurrencies is skyrocketing and how resilient the industry will continue to be due to its potential to revolutionize many existing institutions and governance models around the world.
The founder and CEO of the crypto exchange went on further and discussed that the company is looking for a place in the world to setup its headquarters that is friendly to the crypto industry.
Most governments have been conservative regarding crypto so far while some have been fairly open about embracing the new asset class.
As of now, it seems that there is no perfect place with the right crypto regulatory framework and that it will take time for the regulations to mature before they catch up with the technology.
— Crypto Scoop (@cryptscp) January 20, 2022
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