Back in January, it was announced by Facebook, Inc. (NASDAQ: FB) that the world’s leading social network would be banning advertisements associated with cryptocurrency. Ultimately, the company saw cryptocurrency as being riddled with scam and move to protect its users by banning the use of Facebook ads for cryptocurrency related targets. However, that seems to be changing.
Facebook Announces Reversal Of Cryptocurrency Ban
As mentioned above, back in January, Facebook introduced a new advertising policy that would ban the use of their advertising network for cryptocurrency related ads. The action was taken in an attempt to protect the facebook audience from scams in the cryptocurrency space. However, in a post offered on June 26, 2018, Facebook announced that it would be changing the advertising policy yet again. This time, it would be allowing cryptocurrency advertising.
Pointing to a quote from the original release, stating:
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.
In the post, Facebook said that it has been looking over the best way to refine the policy over the last few months, with the goal of allowing some ads while working to ensure that they would be safe. As a result, the company has come to a conclusion that it will allow the advertising of cryptocurrency under strict conditions. These conditions include:
- Pre-Approval – Before a cryptocurrency can be advertised through Facebook, the crypto currency must be pre-approved. In order to be approved, advertisers must submit an application to help assess their eligibility.
- Licensing – Facebook is going to want to see any licenses that the cryptocurrency or advertiser of the cryptocurrency has obtained.
- Company Status – Facebook also wants to know if the company or cryptocurrency is a publicly traded one.
- Other Relevant Information – Facebook will be requesting other relevant information to decide whether or not an advertiser is eligible to advertise cryptocurrency related ads.
Why This Is So Important
Facebook is the largest social network online today and, according to Alexa.com, is the third most popular website in the world. In fact, it’s second only to Google and Youtube! With this in mind, Facebook is a key advertising platform for anyone who wants to advertise online. Considering the fact that cryptocurrency lives online, online advertising is key. With Facebook allowing for this advertising, we see a key form of validation for the idea of cryptocurrency as a valuable asset.
Furthermore, Facebook is going to become an elite source of advertising for the best of the best cryptocurrencies and cryptocurrency related services, or at least, that’s what it seems as though they are trying to do here. With that in mind, following approved cryptocurrency advertisers on Facebook may alert crypto-traders to market opportunities as being accepted by Facebook as an advertiser will likely serve as a form of validation for each cryptocurrency that achieves this status.
Moving forward, I’ll be watching both Facebook and the cryptocurrency market closely. It will be interesting to see which cryptocurrencies get accepted to advertise on Facebook and how this milestone affects the trading price of these assets.