It has been a turbulent year for Facebook. Controversial data collection and privacy issues brought Facebook on the top of the news headlines. Effect of this was that Facebook wasn't the world favorite social network in the past year. Also, in the midst of these allegations, Facebook has banned cryptocurrency advertising in January. Reason for this was to protect Facebook users, as they thought cryptocurrency advertising brings risky financial investments and possible scams. Crypto space is doing just fine as it has found other means of advertising. Facebook, on the other hand, made a mistake, as cryptocurrency advertisement ban is to be lifted.
New Cryptocurrency Advertisement Rules
In an official announcement named “Updates to Our Prohibited Financial Products and Services Policy", Facebook explained changes made to the rules of cryptocurrency advertisement.
They said in the policy update that Facebook looked for the best way to refine existing cryptocurrency advertising policy. Facebook looked to allow certain crypto ads while ensuring users safety. It is important to note that policies were refined, not completely abandoned. Facebook will continue to ban ads that promote Initial Coin Offerings (ICOs) and binary options.
Starting from June 26, Facebook is allowing certain ads that promote cryptocurrencies and some related content from advertisers that are pre-approved. All interested crypto advertisers will have to submit an application before their add becomes eligible for the public. In this application, they will have to show all the licenses they obtained and also to define all the relevant information about their product.
Facebook also stated that not everyone who wants to advertise will be able to do so. Only legitimate crypto businesses that fulfill all obligations will be able to showcase their ad on Facebook. In the policy update, it is also said that Facebook will continue to study blockchain and cryptocurrency technology in order to further revise these policies, if necessary.
These updates brought a lot of hype in the crypto community. There have been different stances on the motivation behind this move by Facebook. These reasons range from the idea that Facebook wants to launch their own cryptocurrency, to an idea that they want to buy Coinbase crypto exchange.
Regardless of the motivation behind these policy updates, they are certainly a positive novelty for the crypto community. Advertisement bans hurt the public image of the crypto community. Lifting these bans will not completely solve the damage but it is certainly a step towards the better public image of cryptocurrencies.
Also, it seems as though Facebook has finally understood the power of cryptocurrencies and it wants to play a bigger role in the future of technology development. It is also good to note that Facebook launched a blockchain research team in May. This is a good indicator of Facebook's intentions to be a major player in the blockchain sphere. It is still unknown on what this research team is focusing on, but it looks like some interesting developments are ahead of us.
What do you think about Facebook’s cryptocurrency advertisement policy update? Share your opinion in our social media!