Marketing

On-chain data — The missing link in Web3 advertising

April 17, 2024 Coin Telegraph

Crypto in the well and snake villain star in FCA’s pixelated animation

December 14, 2023 Coin Telegraph

Swiss crypto bank Seba rebrands to Amina amid global expansion

December 1, 2023 Coin Telegraph

Banks

Seba’s new name, Amina, stems from “transamination,” meaning transference of one compound to another, symbolizing bringing different types of banking together.

Major Swiss cryptocurrency-enabled bank Seba is changing its name amid growing ambitions to expand its trading services worldwide.

Seba Bank AG has rebranded to Amina Bank AG, the firm announced to Cointelegraph on Nov.

The new name, Amina, stems from the term “transamination,” meaning the transference of one compound to another, the firm said — referring to its mission to bring together various elements of traditional, digital and crypto banking.

While the new naming is based on the idea of compounding different types of banking, Amina’s previous name, Seba, is reportedly a play on the name of its founder, Sebastien Merillat. “I’m just passionate about technology and seeing how it will work,” Merillat said in an interview in 2019.

Seba’s rebranding to Amina comes amid the crypto bank actively expanding its products around the world. In early November 2023, Seba obtained a license from the Hong Kong Securities and Futures Commission, which allowed the firm to offer crypto trading services in the country. In 2022, Seba also obtained financial services permission from Abu Dhabi Global Market and opened an office in Abu Dhabi.

Spanish regulators set precedent with crypto ad violations case

November 9, 2023 Coin Telegraph

Coin Telegraph

The National Securities Market Commission accuses Miolos of non-compliance with the cryptocurrency regulations established by the CNMV circular from January 2022.

The principal financial regulator in Spain, the National Securities Market Commission (CNMV), has opened the first case on violating crypto promotion rules in the country.

As reported in the press release from Nov. 8, CNMV initiated “sanctioning proceedings” against Miolos S.L for two “massive” advertisement companies in September and November 2022.

The Commission accuses Miolos of non-compliance with the cryptocurrency regulations established by the CNMV circular from January 2022. Specifically, the company didn’t put any risk warnings and didn’t submit its campaigns for the CNMV’s authorization. The circular obliges companies to provide promo materials for a check at least ten days before publication.

According to the press release, this is the first time CNMV opened sanctioning proceedings for non-compliance with crypto promotion regulations “to remind the public of the need to follow and respect them.” The Spanish regulator also reiterated the right of Miolos to defend itself against allegations.

Spain has said it intends to implement the first comprehensive European Union crypto framework, Markets in Crypto-Assets (MiCA) even earlier than the deadline for EU member states to provide legal certainty and investor protection.

Meanwhile, stepping into the business of crypto promotion oversight, the country can draw some conclusions from the example of the United Kingdom. In the U.K., regulators’ eagerness to pursue the violations of the crypto promotion rules has led to a massive inability of businesses to comply with them and the departure of several major international players from the market.

At first, the Financial Conduct Authority (FCA) had to extend the technical deadlines for compliance to 2024 and then issue the “finalized non-handbook guidance,” once again clarifying the compliance requirements.

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UK Financial Regulator Unveils Guidance for Crypto Firms on Digital Assets Marketing

November 4, 2023 The Daily Hodl

UK financial watchdog restricts Binance partner from issuing crypto ads

October 10, 2023 Coin Telegraph

Binance

The Financial Conduct Authority’s marketing requirements for crypto firms went into effect on Oct. 8, requiring some to partner with local companies for compliance.

The Financial Conduct Authority (FCA) of the United Kingdom has placed restrictions on peer-to-peer lending platform Rebuildingsociety, the firm with which crypto exchange Binance partnered for compliance with the regulator’s marketing regime.

In an Oct. 10 notice, the FCA said Rebuildingsociety was not authorized to “approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorised person” and needed to withdraw any existing approvals. The notice suggested that Binance may no longer have a U.K. partner in compliance with the FCA’s marketing requirements, which went into effect on Oct. 8.

The regulator warned Rebuildingsociety to notify any client — presumably including Binance — that it was “not permitted to approve the content of any Financial Promotion for a Qualifying Cryptoasset,” withdraw any ads offering to approve financial promotions and confirm its compliance to the FCA in writing. Binance aimed to use Rebuildingsociety to allow its U.K. users to view the exchange’s products and services through a localized domain, as the exchange is not registered with the FCA.

The FCA’s restrictions came less than seven days after Binance’s announcement of a partnership with Rebuildingsociety, allowing the exchange to market spot trading, nonfungible tokens and other products and services to U.K. users. Under the FCA’s regime, the crypto exchange said it would no longer offer referral bonuses and gift cards.

The marketing regime, which took effect on Oct. 8, was aimed at requiring firms, including crypto companies, to provide “clear, fair and not misleading” ads or risk criminal charges. The FCA added that certain companies could receive approval for a January 2024 deadline amid uncertainty surrounding the rules, but it’s unclear whether Binance planned to pursue this extension. Companies, including OKX and MoonPay, have already announced they plan to comply with the FCA rules.

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UK FCA gives unregistered crypto firms ‘final warning’ on ads regime compliance

September 21, 2023 Coin Telegraph

The financial regulator expressed its frustration at the lack of engagement from crypto firms in a strongly worded letter.

The Financial Conduct Authority (FCA), the United Kingdom’s financial markets regulator, has again expressed its concern over the lack of engagement on the part of crypto firms that will soon be subject to new marketing rules. The consequences of noncompliance could be severe, it warned.

In a letter dated Sept. 21, the FCA said it was making a final warning to firms marketing crypto assets to UK consumers. The four-page letter first documented the efforts the agency had made to reach out to crypto firms and attempted to support them as they complied with rules announced June 8.

The FCA has gone so far as to extend the Oct. 8 compliance deadline to Jan. 8, 2024, “to introduce features that require greater technical development,” and to publish lengthy notes on best practices. But “many unregistered, overseas cryptoasset firms […] have refused to engage with the FCA despite our best efforts,” the letter said. As evidence, the letter pointed out that only 24 such firms responded to a survey sent to 150 of them.

Compliance with the new regime will require firms to be proactive:

“Once the regime is in force, unauthorised and unregistered crypto businesses will only be able to communicate financial promotions which have been approved by an authorised person or are within the scope of certain narrow exemptions in the Financial Promotion Order.”

Illegal promotion of crypto assets would become a criminal offense. Violators would be placed on a warning list and their promotions could be blocked or removed from websites, social media and apps. Those intermediaries would be expected to heed the new regime as well, in line with Anti-Money Laundering and Counter-Terrorist Financing regulations and other measures.

FCA issues final warning to unregistered crypto firms about upcoming financial promotions regime. UK customer concerns cited. Compliance steps outlined. Expectations for supporting businesses discussed. Read the letter in full here: https://t.co/AjSTQKXDDl pic.twitter.com/hfX9qbLmBq
— Digital Currencies Governance Group (DCGG) (@DigitalDcgg) September 21, 2023

The FCA could seek monetary compensation from the violators, and contracts they enter into with UK citizens would not be enforceable, the letter continues. Crypto asset forms that are unable to meet the new requirements are expected to take steps to prevent UK consumers from responding to their promotions.

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UK financial watchdog could give crypto firms until January 2024 for marketing compliance

September 7, 2023 Coin Telegraph

Coin Telegraph

Companies offering crypto services to U.K. residents have an Oct. 8 deadline to run “clear, fair and not misleading” marketing campaigns, but some could have until Jan. 8.

The United Kingdom’s Financial Conduct Authority, or FCA, has reiterated its warning for all crypto asset firms marketing to users in the country to be in compliance with rules going into effect in October 2023, but added companies could have “more time to implement certain changes”.

In a Sept. 7 notice, the FCA said crypto firms operating in the U.K. could have until January 8, 2024 to address technical issues related to its financial promotions regime if granted approval. The financial watchdog announced the rules aimed at curbing aggressive marketing by crypto firms in June, saying that companies would have to provide “clear, fair and not misleading” ads or risk criminal charges.

“Crypto firms must market to UK consumers clearly, fairly and honestly,” said FCA consumer investments director Lucy Castledine. “They must provide risk warnings people understand. As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right.”

From 8 October 2023, #crypto firms must market to UK consumers clearly, fairly and honestly, and must also provide risk warnings people understand. https://t.co/cqxj1jVtAT
— Financial Conduct Authority (@TheFCA) September 7, 2023

According to the financial watchdog, promotions falling under the compliance regime included “websites, mobile apps, social media posts and online advertising,” which were “capable of having an effect in the UK” and not limited to firms based in the country. The FCA suggested that it could pursue “robust action” against firms including adding company names to a warning list and requesting removal of social media accounts and websites.

The modification of the enforcement rules, according to a Sept. 7 letter, came in response to crypto firms “not sufficiently considering how certain rules apply to the specifics of the cryptoasset services they provide” as well as significant changes required to be in compliance. Only firms granted approval will have until Jan. 8 — others face an Oct. 8 deadline.

“We understand the challenges firms have faced in preparing for the financial promotions regime. This will be the first conduct regime for the sector and represents a fundamental change to how cryptoasset activities are regulated in the UK.”

In addition to complying with the FCA’s marketing regime, companies must register with the regulator to “carry out crypto asset activities” in the United Kingdom. At the time of publication, the FCA listed 42 registered crypto firms in compliance with its requirements.

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Digital marketing will become Web3’s next major use case, says report

July 27, 2023 Coin Telegraph

Analytics

More than 70 startups have raised over $600 million in the embryonic Web3 digital marketing sector.

The Web3 ecosystem could become the next golden opportunity for digital marketers, with almost 200 companies already thinking deeply about how to utilize the Web3 tech stack.

On July 25, Web3 marketing analytics firm Safary released a comprehensive report titled “The Web3 Growth Landscape 2023."

It noted that the 2010s were the “golden age of digital marketing” with Web2 growth seeing 150 marketing companies in 2011 increase to 11,000 in 2023.

However, over the last three years, the digital marketing landscape has moved to a more privacy-centric environment. Therefore, marketers may also need to change tack and embrace the Web3 tech stack, it said.

Their findings reveal that there are currently almost 200 companies already “thinking deeply” about the new digital media landscape, and 71 of them have collectively raised $600 million in funding.

*Market map showing 180+ teams building Web3 growth tools and experiences: Source: Safary*

Messaging, Questing and Loyalty platforms are the most well-funded categories, it reported, with each attracting more than $100 million in funding.

Quest platforms like Yield Guide Games create engagement marketplaces, directing users to complete incentive offers. This facilitates a more direct brand-user relationship than ads.

Additionally, loyalty companies help brands increase customer value and retention through rewards programs powered by NFTs and tokens.

There are also analytics tools for marketers like Nansen and Dune that aggregate on-chain, platform and social data to uncover growth insights on Web3 communities.

Discovery platforms such as DappRadar “have the potential to be some of the biggest ad real estate proprietaries in Web3,” it added, provided they invest in long-term strategies like SEO. It also cited CoinMarketCap as an example of one of “the highest trafficked websites on the internet.”

There are also 18 Web3 growth agencies that advise and deploy growth strategies on behalf of blockchain projects.

Marketing industry analytics outlet Chiefmartec has logged 11,038 marketing solutions and services this year overall, an 11% increase from the 9,932 it charted in 2022.

As Web3 evolves and grows, marketers will need to keep up and it appears that hundreds of startups have already got a head start.

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AI automation could take over 50% of today’s work activity by 2045: McKinsey

June 15, 2023 Coin Telegraph

Adoption

Management consulting firm McKinsey & Co believes AI will have the “biggest impact” on high-wage workers.

In just 22 years, generative AI may be able to fully automate half of all work activity conducted today, including tasks related to decision-making, management, and interfacing with stakeholders, according to a new report from McKinsey & Co.

The prediction came from the management consulting firm report on June 14, forecasting 75% of generative AI value creation will come from customer service operations, marketing and sales, software engineering, as well as research and development positions.

What’s the value and impact of #generativeAI? Companies across countless industries are already experimenting with its applications. Our new research has found that the value at stake is huge–potentially $2.6 to $4.4 trillion in #productivity annually➡ https://t.co/pY5ACuvoL1 pic.twitter.com/ecZ0RvtzHl
— McKinsey & Company (@McKinsey) June 14, 2023

The firm explained that recent developments in generative AI has “accelerated” its “midpoint” prediction by nearly a decade from 2053 — its 2016 estimate — to 2045.

McKinsey explained that its broad range of 2030-2060 was made to encompass a range of outcomes — such as the rate at which generative AI is adopted, investment decisions and regulation, among other factors.

Its previous range for 50% of work being automated was 2035-2070.

*McKinsey’s new predicted “midpoint” time at which automation reaches 50% of time on work-related activities has accelerated by eight years to 2045. Source: McKinsey*

The consulting firm said, however, the pace of adoption across the globe will vary considerably from country to country:

“Automation adoption is likely to be faster in developed economies, where higher wages will make it economically feasible sooner.”

*Early and late scenario midpoint times for the United States, Germany, Japan, France, China, Mexico and India. Source: McKinsey.*

Generative AI systems now have the potential to automate work activities that absorb 60-70% of employees’ time today, McKinsey estimated.

Interestingly, the report estimates generative AI will likely have the “biggest impact” on high-wage workers applying a high degree of “expertise” in the form of decision making, management and interfacing with stakeholders.

What will be the impact of generative AI on work, and how much value could it generate?

Explore the full research: https://t.co/A3GOfAGrHC pic.twitter.com/Qed0DhZsyE
— McKinsey Global Institute (@McKinsey_MGI) June 14, 2023

The report also predicts that the generative AI market will add between $2.6 to $4.4 trillion to the world economy annually and be worth a whopping $15.7 trillion by 2030.

This would provide enormous economic value on top of non-generative AI tools in mainstream use today, the firm said:

“That would add 15 to 40 percent to the $11.0 trillion to $17.7 trillion of economic value that we now estimate nongenerative artificial intelligence and analytics could unlock.”

Generative AI systems are capable of producing text, images, audio and videos in response to prompts by receiving input data and learning its patterns. OpenAI’s ChatGPT is the most commonly used generative AI tool today.

McKinsey’s $15.7 trillion prediction by 2030 is more than a three-fold increase in comparison to its $5 trillion prediction for the Metaverse over the same timeframe.

However, the recent growth of generative AI platforms hasn’t come without concerns.

The United Nations recently highlighted “serious and urgent” concerns about generative AI tools producing fake news and information on June 12.

Meta CEO Mark Zuckerberg received a grilling by United States Senators of a “leaked” release of the firm’s AI tool “LLaMA” which the senators claim to be potentially “dangerous” and be possibly used for “criminal tasks.”

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