Crypto Advertising Revenue Drop In France After Latest Ban
Some countries, however, have imposed strict regulations for this sector making it hard for firms to reach targeted groups.
France’s Ban On Crypto Ads Takes Toll On Revenues
France has banned advertising of cryptocurrency services. Additionally, the country has restricted contracts for different ads. Following the ban, the revenue share in this sector has declined. The CFD is among the prominent forms of derivative exchange.
The local regulator AMF shared data on the performance of the financial sector advertising between January and last month. The results released on Friday indicated that cryptocurrency ads have declined to stand at 12%. This is a halving from 23% recorded in the first quarter of 2018. In this category, we have ICO, blockchain ads.
At the beginning of this year, French regulators announced that all products related to cryptocurrencies are derivatives in legal terms. This means that they need to adhere to regulations. Products that are not listed as derivatives will be banned from online advertisements.
In 2017, CFDs and cryptocurrencies played a major role in the advertising sector. They contributed to about 50% of the total financial ad market. In 2018, their share has declined to 25%.
According to AMF, the craze around cryptocurrencies and the binary options and CFDs offered from forex brokers permits them to stake on the crypto prices without pumping funds into cryptocurrencies.
Even as crypto advertising revenues decline, the French government has been supporting blockchain technology by lowering the tax bands on profits to 19% from 45%. We also have a bonus contribution to the social welfare platform that ups the latest rate up to about 35%, although this is still a 25% reduction. France authorities have categorized bitcoin as a move below asset exposing it to taxation.