Facebook Announces Reversal of Ban on Crypto Advertisements
Social media giant Facebook has yet again made changes to its advertising policy. This time, modifications have been made to policies targeted at financial products. In effect, the company has announced that it will allow pre-approved companies to post advertisements for cryptocurrency-related financial products on its platform, a reversal of a prior ban. According to Facebook, the change in policy is to allow marketers to advertise their products while also ensuring they are not unsafe or misleading to its user base.
In January 2018, the company had announced a blanket ban on all cryptocurrency-related advertisements across its suite of services. The policy was enforced after numerous reports confirmed the misleading nature of advertisements promoting investments in cryptocurrency and digital tokens. Marketers were employing sharp tactics to create misleading advertisements and trick investors into believing that they could double or even triple their investment. To combat this, Facebook rolled out a controversial blanket ban on all crypto and ICO advertisements.
A Softer Approach
The recent changes will make it easier for approved advertisers to publicise crypto offerings. Any advertiser looking to publish a crypto advertisement will have to submit an application. The process will also involve an audit of the company’s registration, licenses obtained and an undertaking stating whether or not the token is publicly traded on any exchange. Facebook will also enforce a thorough background check. If there are no red flags raised during the process, the marketing campaign will go live across Facebook’s services.
The social networking giant has clearly acknowledged that while not every application will be accepted, it is willing to listen to feedback. Should there arise a need to further liberalize the policy, Facebook will announce it in due time. Meanwhile, users can report any misleading financial promotion they come across on the platform.
Twitter, on the other hand, continues to impose a similar ban on crypto advertisements. Reddit and Google also have policies that prohibit the publicity of crypto-related offerings on their platforms.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.
