Ad Restrictions Won’t Impact Crypto Demand, Says Binance CEO

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Binance CEO Changpeng Zhao, also known as “CZ”, claimed that increasing restrictions on crypto advertising will not impact demand.

During his interview with CNBC, CZ pointed out that physical crypto ads and crypto ads, in general, haven’t had much of an impact on user growth, and that only became mainstream over the course of of recent years. He said the majority of crypto adoption has come from “word of mouth” marketing.

Crackdown on crypto advertising likely won’t have much 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 such as Google and Facebook had not allowed crypto ads for a very long time. Thus, it is clear that advertising does not play a significant role in crypto adoption or demand. He went on to add that the series of regulatory crackdowns on crypto ads only shows the growing demand. CZ said:

“The crackdown on crypto advertising is unlikely to have much effect on demand, as most crypto users come from word-of-mouth promotions anyway.”

The CEO’s comments come amid growing restrictions and numerous measures taken by various countries in recent weeks. Singapore recently released new guidelines for crypto companies, banning crypto advertising in public areas. The Monetary Authority of Singapore has also banned crypto service providers from opening crypto ATMs. Following this decision, several crypto ATMs in the country have closed.

The UK’s advertising watchdog, the Advertising Standards Authority, also continued its crackdown on misleading crypto advertisements by banning two advertisements from popular crypto trading platform Crypto.com. The Spanish government, on the other hand, is also looking to put in place new regulations for crypto advertisements.

Related: UK Advertiser ASA Continues Crypto Ad Ban Frenzy

Regulators have shared their concern over the misleading content of crypto advertisements, where most crypto firms are accused of highlighting big returns while downplaying the risks associated with crypto investments. Another major obstacle is the lack of clarity on crypto regulations in the majority of countries, which makes crypto advertisements an even bigger headache for regulators.

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