The popular social media giant Facebook is reversing its previous policy regarding cryptocurrency ads implemented in January. The new rules will allow some pre-approved advertisers to promote cryptocurrency services, such as coin exchanges, and crypto businesses within the specified requirements established by the company to cut down on fraud or scams.
The original reason for the ban was to prevent individuals from implementing deceptive or misleading promotional practices with the surge in popularity of Bitcoin at the time. The new rules allow advertisers to submit an application to Facebook if they want to promote crypto products or services. They are still not allowed to offer initial coin offerings (ICOs) or binary options. Facebook requires advertisers to provide licenses proving where they’re exchanged and relevant background information before being allowed to run crypto-based ads.
The surge in the cryptocurrency market was short-lived but reached its peak at almost $20,000 in late 2017. Its current price is slightly above $6,000. Many newcomers wanted to get involved to invest and make a profit possibly, and the company was worried that some companies would take advantage of these vulnerable individuals for financial gain with scams. Twitter, Snapchat, and Google followed suit and banned crypto ads as well.
It makes sense to see Facebook change its policy. Many Internet users still have faith in the cryptocurrency market and continue to monitor and trade it actively. The industry is growing, and advertisers need to have a platform to market their products and services to. Facebook doesn’t want to lose out on advertising revenue by passing up the opportunity to work with legitimate businesses in the industry.
The company also feels that the craze surrounding cryptocurrency is very much legitimate. They’ve even formed a blockchain team within the company to explore how the technology could help them. The blockchain is the foundation for all cryptocurrency ranging from Bitcoin to Ethereum and Litecoin. Facebook appears to try to stay ahead of the competition and try to capitalize on other improvements and innovations that the technology could create the foundation of.