Binance CEO Changpeng Zhao, also known as “CZ”, claimed that the increasing restrictions on crypto advertising will not affect demand.
During his interview with CNBC, CZ emphasized that physical crypto ads and crypto advertising, in general, have not had much of an impact on user growth, and have only become common in recent years. He said that most cryptocurrency adoption comes from “word of mouth” marketing.
Clampdown on crypto advertising is unlikely to have much of an effect on demand, says @binance CEO Changpeng Zhao pic.twitter.com/K5EtuWyxGz
— CNBC International (@CNBCi) January 20, 2022
He also added that major advertising services like Google and Facebook had not allowed crypto ads for a long time. Therefore, it is clear that advertising does not play a significant role in the adoption or demand for cryptocurrencies. He went on to add that the series of regulatory restrictions on crypto ads only shows the growing demand. CZ said:
“The crackdown on crypto advertising is unlikely to have much of an effect on demand, as most crypto users come from word-of-mouth promotions anyway.”
The CEO’s comments come amid growing restrictions and the slew of actions taken by various countries in recent weeks. Singapore recently issued new guidelines for cryptocurrency companies, banning cryptocurrency advertising in public spaces. The Monetary Authority of Singapore has also banned crypto service providers from opening new cryptocurrency ATMs and following this ruling, several have been closed in the country.
The UK’s advertising watchdog, the Advertising Standards Authority, has also continued its crackdown on misleading crypto ads as it banned two ads from popular cryptocurrency trading platform Crypto.com. The Spanish government, on the other hand, is also looking to implement new regulations for crypto ads.
Regulators have shared concerns about the misleading content of cryptocurrency advertisements, in which most crypto firms are accused of highlighting the high returns and downplaying the risks associated with investments in digital currencies.. Another major hurdle is the lack of clarity on crypto regulations in most countries, making crypto announcements an even bigger headache for regulators.
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