Facebook allows approved cryptocurrency ads, maintains ban on ICOs
The world’s most popular social network has overturned its ban on cryptocurrency ads, and is permitting non-ICO advertisements that support cryptocurrency and other related business from the advertisers who can pre-approve the promotion. At the beginning of this year, Facebook announced it was banning all advertisements related to cryptocurrency – most of which were used as scam – prohibiting ads that uphold ICOs (Initial Coin Offerings), binary options and cryptocurrencies on its platform.
Though the social network will not approve ICO-based ads, it has lifted the ban by permitting the ads to promote cryptocurrency and any other related financial option from pre-approved advertisers.
This particular strategy was introduced in January with an intention to “exclude the advertisements that promote financial services and products that are mostly related to deceptive or misleading advertising practices.”
While Facebook is still in predicament over the mishandling of the information of about 87 million users, the ban was thought to have been “purposely wide” as it worked to “find misleading ad practices.”
Rob Leathern, Facebook’s Product Management Director, mentioned in a blog post that, the company clarifies the advertisers who want to advertise for cryptocurrency services and products must submit an eligibility application to get the approval for running the financial advertisements, followed by an assessment.
Leathern said, 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.”
While there are many cryptocurrencies that operate legally, there are some that turned out to be complete fraud, losing investors several millions of dollars from their pocket. Also, it’s a dangerous game as many fraudsters are operating hurtful websites concealed as legal cryptocurrency exchanges.
Because of this type of fraud occurring through Facebook, Google also started a ban on crypto in June by stopping ads that are related to ICOs and Cryptocurrencies – preventing the ads from appearing on Google search results.
The updated financial services rule of Facebook will ban “cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice)”.
Consequently, to be authorized by the company, affiliate and aggregators companies will be required to become licensed by regional financial authorities, to have landing pages submitted along with Adwords policies, and fulfill local laws when tentative financial products are integrated.
Twitter also has moved forward with the ban on the cryptocurrency in April, by executing a new ad ban that swathes advertising of token sales and ICOs, and also ads by cryptocurrency wallet services and cryptocurrency exchanges (with the exception of public companies that are scheduled on particular stock markets).