Google Tightens Crypto Ads in Europe as MiCA Rules Take Effect

These stricter rules will require exchanges and wallet providers to be licensed under the MiCA framework or national CASP regimes. While it is intended to enhance investor protection, experts warn that the policy could stifle smaller firms. Crypto gaming and gambling campaigns have become the most expensive in Web3 marketing, with high churn and competition driving up user acquisition costs. Meanwhile, the US Social Security Administration is shifting all public communications to Elon Musk’s X platform, as part of cost-cutting efforts led by the Department of Government Efficiency (DOGE). Google Rolls Out New Crypto Ad Rules Google is set to enforce stricter advertising rules for cryptocurrency services in Europe starting April 23, to align its policies with the EU’s Markets in Crypto-Assets (MiCA) framework. The move requires that crypto exchanges and wallet providers advertising on Google be licensed under MiCA or under national-level Crypto Asset Service Provider (CASP) regimes. These advertisers must also adhere to local legal requirements and get certification from Google. While violations won’t lead to immediate suspensions, Google clarified that accounts found in breach will receive at least a seven-day warning before any action is taken. The policy change comes after the rollout of MiCA in December of 2024, which was the EU’s first comprehensive regulatory structure for digital assets. Google’s advertising restrictions will cover a wide array of European countries, including France, Germany, Italy, Spain, and Sweden, among others. The company’s move is seen as part of a broader shift toward increasing regulatory compliance in the crypto space. Google announcement Legal experts see the change as a “double-edged sword.” Hon Ng, the chief legal officer at Bitget, acknowledged that while the policy enhances investor protection by filtering out unregulated actors, it also risks becoming overly restrictive. He believed that smaller exchanges might struggle with MiCA’s capital requirements and the dual certification demands of Google and local regulators, which could potentially stifle innovation and create enforcement gaps due to varying national transition periods. Others are more skeptical of the policy’s real-world impact. Mattan Erder, general counsel at blockchain project Orbs, suggested that the change may be more about shielding Google from liability than protecting investors. He pointed out that the policy’s effects will largely depend on how burdensome and costly MiCA and CASP registration prove to be. If these frameworks favor larger entities, smaller players may find themselves at a disadvantage in reaching users across European jurisdictions. Crypto Gaming Ads Are Burning Budgets Not only are crypto ads facing strict regulations, but crypto gaming and gambling campaigns recently emerged as the most expensive user acquisition strategies in the Web3 space, with recent data showing that these sectors lead in cost per wallet (CPW) metrics. According to Addressable co-founder Asaf Nadler , the median CPW for these campaigns stands at $8.74, with a lower quartile of $3.40. This makes them the priciest channels for attracting users who already have crypto wallets installed. (Source: X ) CPW is seen as a high-quality metric in crypto marketing, as it directly measures the cost of acquiring users who are more likely to convert to crypto products. The steep CPW associated with gaming and gambling may be attributed to high churn rates, speculative user behavior, and fierce competition in these sectors. Nadler believes there is a big need for a more robust user acquisition engine if Web3 gaming is to achieve the same level of sustainability that is currently seen in traditional gaming ecosystems. Axie Infinity co-founder Jeff “JiHo” Zirlin has a different perspective, and suggested that high CPW phases offer opportunities for experimentation, new product development, and market consolidation in anticipation of the next market boom. In contrast, campaigns in decentralized finance (DeFi) and centralized finance (CeFi) are proving to be far more cost-effective. Nadler pointed out that these sectors have a median CPW of just $2.79, with a lower quartile as low as $0.10. The findings are based on 200 programmatic campaigns that were conducted by over 70 advertisers, collectively targeting an estimated 9.5 million crypto wallet holders globally. The study also revealed how market conditions and regions influence CPW. During bull runs, premium markets like the United States and Western Europe offer scalable and quality engagement at lower costs. However, these same markets become much more expensive during bearish periods. In 2024, CPW in the US and Western Europe increased by four times and 27 times, respectively, from Q1 to Q3 as investor interest dwindled. On the other hand, emerging regions like Latin America and Eastern Europe offer more affordable acquisition costs in favorable market conditions but can also be subject to extreme cost volatility. Social Security Goes Social Meanwhile, the US Social Security Administration (SSA) is set to move all public communications exclusively to the X social media platform. This is a controversial shift that is spearheaded by the Department of Government Efficiency (DOGE), which is led by X owner Elon Musk. According to sources cited by WIRED , the agency will stop issuing traditional letters and press releases, and will rely only on X to inform the public of updates and changes. The move accompanies a big downsizing of the SSA's workforce, which will be reduced from 57,000 to approximately 50,000 employees as part of a broader effort to cut costs and increase operational efficiency. The SSA acknowledged that its longstanding 10-region structure is outdated and will be streamlined into just four regional offices. Elon Musk has been very outspoken in his criticism of the Social Security system, and claimed that it is responsible for billions of dollars in erroneous payments. This sentiment also reportedly gained a lot of traction in the White House . On the other hand, the transition to X raised some concerns about access to vital information, especially for those without internet access or social media accounts. Trump and Musk in the White House (Source: YouTube ) DOGE is aggressively pursuing cuts across various government agencies. In March, it began investigating the Securities and Exchange Commission (SEC) and gained access to its internal data systems. The SEC confirmed its cooperation with the department. DOGE has also proposed cutting the Internal Revenue Service’s (IRS) workforce by 20%, which could potentially affect around 6,800 employees. These reductions will possibly take effect by May 15, which is just one month after the 2024 tax filing deadline. Beyond staff cuts, DOGE is also exploring technological solutions to reduce waste, including a proposal to place the entire federal budget on a blockchain. The initiative is intended to boost transparency and public trust by allowing citizens to track government spending in real time. For now, Musk’s involvement and the centralization of government communications on his own social media platform is a topic of fierce debate over the future of public service accessibility and the role of private influence in federal operations.