Facebook Lifts Ban on Cryptocurrency Ads
Facebook said yesterday that it lifted a ban on ads for cryptocurrencies, but kept its prohibition on initial coin offerings and binary options.
«In the last few months, we’ve looked at the best way to refine this policy (of banning ads related to cryptocurrencies)— to allow some ads while also working to ensure that they’re safe», the company said in an updated statement.
The move reverses a stance back in January, when the social media giant prohibited ads related to cryptocurrencies, initial coin offerings and binary options, offerings due to their frequent association with misleading or deceptive promotional practices.
Pre-approvals Needed
«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,» said Rob Leathern, product management director at Facebook. Hence, not everyone who wants to advertise are eligible.
Meanwhile, the social media giant said it will continue to monitor feedback on this policy and revise it over time.
Similar Restrictions
Twitter, Google and Snapchat announced similar restrictions earlier this year due to concerns over fraud in the fast-growing but largely unregulated world of virtual currencies.
On its ad policy page, Twitter said that it «permits the promotion of financial services and related content with restrictions». The social media firm had earlier faced criticisms for hosting crypto ads on its platform amidst heightened concerns over cryptocurrency-related scams and risks voiced by regulators worldwide.
Regulators Nip Violators
Earlier this year, the U.S. Securities and Exchange Commission shut down an initial coin offering by a Texas company called AriseBank. The company was accused of relying on social media and celebrity endorsers to cheat investors out of $600 million of its goal of $1 billion with its «AriseCoin».
Last month, finews asia reported that the Monetary Authority of Singapore (MAS) halted one initial coin offering (ICO) and warned eight digital token exchanges in Singapore not to facilitate trading in digital tokens that are securities or futures contracts without MAS’ authorization.
