A year after starting to require written approval to advertise cryptocurrency products and services on its platforms, Facebook is updating its advertising policies to remove the pre-approval requirement for ads related to blockchain technology, industry news, and education or events around cryptocurrency.
In June last year, Facebook made a move to ban cryptocurrency ads that didn’t have its prior written approval, the goal of which was to stop Facebook users from being scammed in ICOs and other shady cryptocurrency-related deals. Facebook explains that this was part of its commitment to preventing misleading advertising, but the move was nevertheless judged by some as a way for the company to take out the competition for its own blockchain efforts.
Whatever the case might be, having “listened to feedback and assessed the policy’s effectiveness,” Facebook is now easing the ban with several updates to its advertising policies related to blockchain, cryptocurrency and financial products and services. As explained in a recent Facebook Business announcement, advertisers will still have to apply to run ads promoting cryptocurrency, but Facebook will “no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.”
Also, on 5 June, Facebook will update its Prohibited Financial Products and Services Policy to “no longer allow ads promoting contracts for difference (CFDs), complex financial products that are often associated with predatory behaviour.” Due to their complex nature, these products “often mislead people,” therefore Facebook is banning them. Facebook will also continue its ban on ads for ICOs and binary options.
Advertisers will have to remember that if their ad directs a user to a landing page featuring a restricted product – i.e. a cryptocurrency exchange – Facebook will require prior approval. If, however, the landing page includes a prohibited product – i.e. an initial coin offering (ICO) – the ad will be rejected.
If you’d like to find out more about how Facebook reviews applications to approve blockchain-related ads, click here.
In other news, Facebook’s blockchain efforts are in full swing, with reports indicating the team now has more than 50 employees – 20% of which come from PayPal. Their efforts are concentrated on building a “stablecoin,” a cryptocurrency designed to minimize the volatility of its price, “relative to some ‘stable’ asset or basket of assets potentially pegged to a bundle of currencies.”