According to Binance CEO Changpeng Zhao, crypto adverts restrictions will not impact crypto demand as the adoption of cryptocurrencies come from word-of-mouth marketing.
CZ stated in an interview with CNBC that physical crypto adverts, as well as crypto ads in general, have had little impact on user growth and that they have only been prevalent in the last few years. He claims that “word of mouth” marketing is responsible for the majority of crypto acceptance.
Crypto adverts restriction
He also stated that traditional advertising platforms such as Google and Facebook had previously refused to allow crypto adverts.
As a result, it’s evident that advertising has little impact on crypto acceptance or demand. He went on to say that a slew of regulatory crackdowns on crypto advertisements simply serves to demonstrate the rising demand. CZ stated,
“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 remarks come in the wake of a flurry of new restrictions and actions imposed by several governments in recent weeks. Singapore recently established new crypto company standards that restrict crypto advertising in public locations.
The Singapore Monetary Authority has also prohibited crypto service providers from establishing crypto ATMs. Several crypto ATMs in the country were closed as a result of the verdict.
The Advertising Standards Authority in the United Kingdom continues its war on misleading crypto promotions by banning two adverts from prominent crypto trading platform Crypto.com. On the other hand, the Spanish government is considering new laws for crypto ads.
Regulators have expressed worry about the deceptive content of crypto ads, in which most crypto firms are accused of emphasizing large profits while downplaying the hazards connected with crypto investments.
Another key stumbling block is the lack of clarity in most nations’ crypto legislation, which makes crypto marketing an even bigger issue for regulators.
