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On May 8th, Facebook has updated its advertising policies regarding blockchain, cryptocurrency, and financial products and services.
As per Facebook’s previous ads policies dated back to last June, an advertiser had had to acquire a written approval prior to publishing cryptocurrency products and related services on Facebook. Through the recent announcement, Facebook has completely eliminated the requirement for a written approval and now allows people to post advertisements related to blockchain technology, digital currency news, educational content and events related to cryptocurrencies. Facebook has come to this conclusion after reviewing the feedback received from several individuals.
Facebook has further announced that it will alter their ‘Prohibited Financial Products and Services Policy’ which will be effective from June 5th. According to the official Facebook blog post, the social networking behemoth will strictly ban ads promoting contracts for difference (CFDs), complex financial products that are often associated with some sort of Ponzi schemes.
Due to the lack of understanding of these financial products, they often mislead investors and common people, resulting in complete devastation of their wealth. “We’ll also continue to ban ads for initial coin offerings (ICOs) as well as ads for binary options,” Facebook said in the official blog post.
Being a responsible social media platform, Facebook said that the company will ‘continue to ban the misleading advertising on platforms, especially in the area of financial products and services.’ Individuals who want to advertise their cryptocurrency and related products and services i.e. cryptocurrency exchanges, wallets, mining software, and hardware, etc. will have to go through a review process first.
“As with all ads on Facebook, we require that the ad’s text, targeting, positioning, images and content on the landing page comply with this updated policy as well as with all of our Advertising Policies and Community Standards,” as stated in an official Facebook blog post. By altering their advertisement policies continuously Facebook is making sure that all the misleading ads have no place on the platform.
In general, social media giants such as Facebook, Twitter, Snapchat, etc. have already banned advertisements for initial coin offerings (ICOs) and cryptocurrencies. Even Google has also implemented a ban on cryptocurrency advertising and related content that includes initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice, etc.
In January 2018, Facebook announced several alterations to their list of advertisement policies. The then-policy stated that “Ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.” This policy was later on changed and the crypto ban partially lifted.
Let’s see if the new changes will maintain the delicate balance between free and open advertising space and consumer safety.