Google to Require Government Authorization to Provide Advertising Services for Financial Products in Spain – Regulation Bitcoin News
Google, the web search and software monolith, has announced that it will require authorization from government entities to lend advertising services to financial companies in Spain. This measure, which was also implemented in the U.K. back in 2021, is expected to be extended to more countries in coming months.
Google to Require Government Authorization of Advertisers
Google, the software and web search giant, will start taking measures to curb possible financial fraud using the advertisement platform of the company in Spain. Google announced it will start requiring customers that want to advertise financial products to have government authorization issued by the Spanish securities regulator (CMNV) or the Bank of Spain, the country’s central bank.
At the same time, Google will also require these companies to complete its advertising verification program, which is slated to start this month. The application of the other new measures is expected to start in January 2023. On the objective of the new requirements to be applied on Spanish soil, Google stated:
Our goal is to create a new layer of security against fraud, which will further improve the protection of our network against financial fraud.
Furthermore, Google stated that this new policy will contribute to “guarantee a safe, healthy and sustainable advertising ecosystem.”
Previous Implementations and Expansion
Spain is part of a group of countries that are piloting these restrictions in order to get access to the advertisement platform of the company. The first measure of this kind was applied in the U.K. back in 2021, and is said to have produced positive results. In the same way, advertisers there need the approval of the Financial Conduct Authority to be able to publicize financial products. Google has stated this has produced “a very notable drop” in reports of ads that could be promoting financial scam projects.
Spain will be the second country in which these restrictions are implemented, and the company expects to take the same approach in more countries in the coming months. The CNMV has been active when it comes to vigilance about cryptocurrency products being advertised, requiring notification from any of these campaigns targeting more than 100,000 people at least 10 days before launch.
Influencers with more than 100,000 followers on social media involved in such cryptocurrency advertising campaigns also have to inform regulators of their plans, and have the responsibility of explaining the risks of the investments being advertised to their followers.
What do you think about Google’s new advertising requirements for financial products in Spain? Tell us in the comments section below.
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