Facebook is now allowing some crypto ads
Advertisers must seek authentication by providing necessary documents, details and regulatory licenses.
Several social media platforms banned all cryptocurrency advertisements earlier this year. However, this week Facebook updated its policies to allow pre-approved ads that promote cryptocurrency and related content.
In a Facebook Business post product management director Rob Leathern announced that the company has revisited its previous advertising restrictions and decided to broaden its stance for enterprises wishing to run ads for cryptocurrency products and services.
Facebook will now allow some cryptocurrency adverts, as long as advertisers meet eligibility requirements. However, the company will still prohibit ads that promote binary options and initial coin offerings (ICOs).
Advertisers must submit an application for pre-approval, including any licenses they have obtained, whether they are traded on a public stock exchange and other relevant public background on their business.
“Given these restrictions, not everyone who wants to advertise will be able to do so,” Leathern said. We’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time… It’s important that we continue to help prevent or remove misleading advertising.”
In January, Facebook pulled all advertisements relating to cryptocurrencies and ICOs. The company made the policy intentionally broad, to better detect deceptive and misleading practices. Instagram, owned by Facebook, was also subject to the same wide-ranging constraints.
A few months later, Twitter and Google followed suit, banning all cryptocurrency and ICO advertising.
Twitter’s revised policy states that any advertisement for financial products and services must be compatible with all applicable law, providing necessary disclosures and balanced information of risks and benefits. The ads must also be clearly identified as financial services and indicate their nature and types of services offered.
In April, LinkedIn co-founder and Chinese-American entrepreneur Eric Ly suggested that these restrictions were simply a transient measure and that token sale ads would eventually be re-permitted on these platforms.
“The ban is fundamentally… a conservative protective measure that these platforms have to not have to be entangled with answering the SEC’s potentially interesting questions,” Ly said. “I do believe this is a temporary period because like many domains, advertising has an incentive to support as many domains as possible.”
A new survey aimed at better understanding how people around the world feel about cryptocurrency has discovered that a significant proportion of Americans are eager to buy into the new wave of digital currencies.
However, the Federal Trade Commission (FTC) recently revealed that US consumers will lose more than $3 billion by the end of the year to cryptocurrency scammers, schemes and deceptive mining machines.
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