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Crypto Ad Restrictions Won’t Impact The Crypto Demand: CZ

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Stefan

The crypto ad restrictions won’t impact the crypto demand according to Binance’s CEO Changpeng Zhao so let’s read more in our latest Binance news today.

Changpeng Zhao noted that most of the crypto demand and user adoption is coming from word-of-mouth marketing. He claimed that the crypto ad restrictions won’t really impact the demand. During his interview with CNBC, CZ outlined that the physical crypto ads don’t have a lot of impact on user growth and that it has only become common in the past few years.

He added that the main advertising services like Facebook and Google, it had not allowed crypto ads for the longest time. Its clear advertisement doesn’t play a huge role in crypto adoption or demand, he went on to add that the regulatory clampdowns on crypto ads only show a growing demand for crypto:

“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 came amid the growing restrictions and the slew of actions taken by a few countries in the past few weeks. Singapore issued new guidelines for crypto companies that banned crypto ads in public spaces. The Monetary Authority of Singapore barred crypto services providers from opening crypto ATMs and after the ruling, several crypto ATMs in the country shut down. The UK watchdog Advertising Standards Authority continued its crackdown on crypto ads and banned two ads from popular trading platform Crypto.com. The Spanish governemnt is also looking to bring new regulations for advertisements.

The regulators shared their concern in the misleading content of crypto ads where crypto companies are accused of outlining big returns while downplaying the risks associated with crypto investments. Another huge obstacle is the lack of clarity over the crypto regulations in most of the countries that makes crypto ads are a bigger headache for regulators.

As recently reported, The digital asset ads in Spain will now have to include a warning from February 2022 according to the news release from the Comision Nacional del Mercado de Valores. The paper also outlined new rules indicating that Spain’s regulator wants to ensure that the ads of the products offered are true, understandable, and are not misleading while also including a prominent warning of the associated risks.

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