Facebook has updated its Prohibited Financial Products and Services Policy. As a result, the social media giant allows specific cryptocurrency-related companies to advertise on the platform.
According to the official statement published on 26th June, Facebook has reviewed its ban on all cryptocurrency-based ads and has made some changes. The company specified that this new policy is an update of the previous policy rather than a removal of all rules.
However, following the review, no changes were made to the segment of Initial Coin Offerings (ICOs) and binary options, respectively, ads that intersect these two topics remain forbidden.
Facebook banned all crypto-related ads in January 2018
As reported by Coindoo in January, the social media giant has announced about banning all ads that contain data about ICOs, binary options, and cryptocurrency. The decision was followed by Twitter and Google, which were in the same assent.
Respectively, the first policy prohibited “ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.” Facebook Business has mentioned the decision was taken to fight against misleading ads and other types of scam.
About policy updates
“In the last few months, we’ve looked at the best way to refine this policy — to allow some ads while also working to ensure that they’re safe. So starting June 26, we’ll be updating our policy to allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings,” Rob Leathern explained.
Companies willing to promote their crypto products and services must meet several conditions. The first step is to file a request with which the social media will check the companies’ qualifications – along with any licenses they own, regardless of whether they are registered on a public stock exchange or not.
“Given these restrictions, not everyone who wants to advertise will be able to do so. But 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,” Rob Leathern, Product Management Director continued.
The new decision garnered numerous positive comments from cryptocurrency advertisers. Trey Ditto, Founder of Ditto PR, considers Facebook’s move as “the first step in allowing credible blockchain projects, crypto companies and ICOs to get in front of new potential customers and investors.”
“This will be a big boost for Facebook advertising revenue as the majority of projects out there are interested – and have the money – to run paid ads,” he added.