Facebook has suddenly changed its tune in regards to its policy of banning advertisements on the platform promoting digital currencies.
The social media platform first made its controversial decision to pull the plug on cryptocurrency related ads in the very beginning of 2018. At the time, market prices across the board had just peaked at new all-time highs and everyone was trying to cash in.
Because the cryptocurrency market was still widely underregulated at the time, it was only a matter of time before bad actors caught on and saw the massive opportunity to take advantage of those who were inexperienced in investing. Initial Coin Offering (ICO) scams became rampant during this era, causing many to be cheated out of every penny they put in without ever understanding what they were even investing in.
As the world’s leading social media platform, Facebook saw a huge spike in companies advertising their cryptocurrency projects. With no possible way of being able to vet each project individually, Facebook decided to close the door on all crypto-related ads. Google notably followed suit shortly after in March before reversing its stance just six months after.
According to a recent Facebook Business blog post, its ban will also be finally coming to an end as to ‘no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.’ It will, however, still hold strong on its ban against advertising ICOs, as well as prohibiting advertisements for binary options and contracts for difference (CFDs).
Facebook will continue to strengthen its review process, looking closely at factors such as licensures the company has obtained and whether or not the company is traded publically on a reputable exchange, as well as ‘other relevant public background on their business.’
This ban reversal comes at an interesting time, as Facebook is rumoured to be rolling out a fiat-based native currency of its own as a part of a venture called ‘Project Libra.’
Do you think the soaring prices of cryptocurrencies have anything to do with Facebook’s decision to reverse its ban on cryptocurrency ads? Does the reversal have anything to do with its plans to release its native ‘Facebook Coin?’ Let us know your thoughts in the comments below.