Facebook Welcomes Crypto with Open Arms-Sort Of
Facebook is welcoming cryptocurrencies to the ever-growing social media platform by alleviating its ban on ads pertaining to virtual currencies.
“Starting June 26, we’ll be updating our policy to allow ads that promote cryptocurrency and related content from pre-approved advertisers.” Facebook “instituted its “cryptocurrency products and services onboarding request” enabling certain companies to have their crypto ads featured on the platform,” the social media giant said in a blog post.
“Advertisers wanting to run ads for cryptocurrency products and services must submit an application to help us assess their eligibility — including any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business,” Rob Leathern, Facebook’s product management director, said.
The request sheet states that Facebook wants firms to specify the type of services they intend to advertise on their sites. For instance, the company asks them to obtain the necessary licenses to operate or show proof they are a publicly listed company. It also provided a published a legal addendum stating its policy on cryptocurrency ads.
Facebook’s policy governing crypto-related ads could be revised in the future.
“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,” he added.
The move, however, excludes advertisements for initial coin offerings (ICOs) or binary options. Bans on these two items remain effective months after Facebook acted for the first time against crypto ads in a move mirrored by other companies including Google and Twiter.
“In January, we announced a new policy to ‘prohibit ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency,” Leathern explained.
“At the time we also made clear that ‘this policy is intentionally broad while we work to better detect deceptive and misleading advertising practices… We will revisit this policy and how we enforce it as our signals improve,’” he added.
Crypto public relations companies commended Facebook for making such a bold move. Trey Ditto, founder of Ditto PR, a crypto PR firm, said that the company’s recent move is “the first step in allowing credible blockchain projects, crypto companies and ICOs to get in front of new potential customers and investors.”
“This will be a big boost for Facebook advertising revenue as the majority of projects out there are interested – and have the money – to run paid ads,” Ditto said.