Facebook Backpedals Cryptocurrency Ban, Will Now Allow Verified Crypto Advertisements
Social media giant Facebook upheld its advertising ban on cryptocurrencies and related products on June 26, 2018. In January 2018, the Menlo Park-headquartered company joined Google, YouTube, and Bing in blocking ad services to providers of digital assets.
Following Bitcoin’s (BTC) famous bull run in December 2017 which saw the pioneer cryptocurrency reach $20,000 on some exchanges, governments and companies around the world took invasive steps to block cryptocurrency businesses from advertising their products citing the protection of investor capital and the “misleading” nature of the innately volatile digital assets.
In its blog post, Facebook stated “financial products and services frequently associated with misleading or deceptive promotional practices” at the time.
However, social media and search engine companies withdraw prime revenue from advertising services. And due to the limited, yet significant, traction cryptocurrency companies gain on online mediums, it seems like companies may revert their uncalled ban on digital asset advertising, starting with Facebook.
Facebook Opens Advertising For Crypto
On June 26, Facebook declared it would allow advertisements from “approved advertisers” on its platform, adding that Initial Coin Offerings (ICOs), binary options, and other types of token issuers remain banned.
For receiving relevant permission, advertisers need to prove the “licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business.”
It is not difficult to view Facebook’s reasons for retracting the ban – the cryptocurrency industry is undoubtedly growing and can generate significant advertising revenue. As long as verified companies participate in responsible activities, the platform’s users face litte chances of getting scammed.
Interested crypto advertisers can apply here.
Facebook Blockchain Push
While shunning away from digital assets, Facebook wholeheartedly embraces the underlying decentralized ledger technology.
As reported by BTCManager on May 10, 2018, Facebook confirmed the creation of an internal team focused on building blockchain products and services for the giant’s future business.
David Marcus, the executive responsible for running Facebook’s Messenger platform, was appointed to head the internal team, which as per reports, includes key Instagram members. Marcus is joined by James Everingham and Kevin Weil, VPs of Engineering and Product respectively at Facebook-owned Instagram.
Facebook has no plans to create their cryptocurrency at the moment. However, blockchain technology could help with encrypted data storage, blockchain could help with encrypted data storage, particularly after its recent data-misuse scandal involving U.K.- based Cambridge Analytica. In March 2017, the two firms were at the center of a massive controversy, as Cambridge Analytica allegedly used Facebook’s data for pushing political agendas.