Facebook is lifting the ban which it imposed in January of all crypto ads, the company has now allowed pre-approved advertisers such as; exchanges to advertise on their platform, however, the initial coins offerings will remain banned. Facebook has announced this in a Blog post.
Facebook banned all sorts of cryptocurrency ads during the end of January 2018, amid deceptive promotional practices associated with financial products and services in cryptocurrencies, surging price of Bitcoin and some other ethical issues associated with it.
The company has now allowed the advertisers to use Facebook ads to promote crypto products. The advertisers have to fill out the form ‘confirm their licenses’ and confirm the cryptocurrency being promoted is traded publicly. Once the advertiser is approved by Facebook, it can continue promoting the business and associated products on the Facebook.
Cryptocurrency bubble inflated last year with record high price of Bitcoin around $20,000. In may the Bitcoin saw a huge plunge and fall below $8,000, the Bitcoin has further dropped to $4000 during June.
The sudden surge in cryptocurrency created impatience among consumers and shady businesses took advantage of that situation by promoting scams on Facebook, as a result, Facebook banned all cryptocurrencies on the platform, not only Facebook but also Twitter, Google and Snapchat banned the cryptocurrency Ads on their platforms.
Why Facebook wants to allow cryptocurrency ads on the platform is understandable, a market full of excitement, a growing industry and loads of potential advertisers could be the potential customers of Facebook, as long as the Facebook users are safe from being scammed. The company certainly wants to make extra money from advertising and cryptocurrency is the one which could make a lot.
That is why Facebook has allowed some crypto advertisers after putting legitimacy checks in place to offer legitimate products and services.
Facebook has also started its own internal blockchain team earlier this year in order to explore the technology used as a foundation of all cryptocurrencies.