Facebook Reverses Its Crypto Related Ads Ban in an Effort to Release its Own Blockchain-Based Stablecoin
May 8, 2019
Facebook, the social media giant has been making a lot of headlines of late. One of the major hits Facebook has released is its recently launched blockchain unit. After the launch, the million-dollar audience platform issued a statement looking for blockchain experts, -all this with an aim to use blockchain’s achievements to improve the platform.
When Facebook first banned the advertising of cryptocurrencies it was because the platform believed ads were frequently associated with misleading or deceptive promotional practices. In June last year, the platform loosened its policy and allowed for pre-selected ads, from pre-approved advertises only. To obtain pre-approval, advertisers were required to submit an application with licenses as well as other information that could prove their legitimacy. Today, Facebook has suddenly relaxed its crypto ad terms.
The social networking website has reversed its previous policy that allowed only a limited number of pre-approved advertisers to run crypto related ads and will once again allow adverts related to both crypto and blockchain on its platform.
“We’ve listened to feedback and assessed the policy’s effectiveness. While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency,” said the social media website.
Despite the sudden U-turn, Facebook still remains committed to preventing misleading adverts from being posted on the platform. Therefore, all crypto enthusiastics wishing to promote these digital coins, their exchanges and mining software or hardware will still have to go through a review process. Apparently, other services still such as Initial Coin Offerings (ICOs) fall onto the prohibited list.
‘’Starting 5 June, we will update our Prohibited Financial Products and Services Policy to no longer allow ads promoting contracts for difference (CFDs), complex financial products that are often associated with predatory behaviour. These products, due to their complexity, often mislead people. We’ll also continue to ban ads for initial coin offerings (ICOs) as well as ads for binary options.’’
This new ad policy comes at a time when Facebook is looking to launch its own USD-pegged Stablecoin, which according to analysts poses more as a threat to the U.S. dollar rather that to Bitcoin. One fact however, is that the Stablecoin will lure more investors into the crypto industry.