In an unsurprising turn of events, Facebook has changed its stance once again with regards to crypto-related advertising on its platform. It would seem the lure of so much potential ad revenue became too much to ignore.
At the beginning of this year, Facebook imposed new rules banning any advertising related to cryptocurrency or initial coin offerings (ICO’s). Now it reveals that while ICO’s remain banned, it has changed the policy to allow for some cryptocurrency advertising.
The announcement yesterday, June 26th, states that the social media giant is looking into refining its policies rather than upholding the blanket ban. It aims to allow for some ads while maintaining the safety of its users and improving the integrity of its ads.
The revised policy on prohibited products and services now states that Facebook will “allow ads that promote cryptocurrency and related content from pre-approved advertisers” but goes on to say that ads promoting binary options and initial coin offerings will remain prohibited.
Cryptocurrency advertisers will now be required to submit an application to be assessed for eligibility before being able to advertise. Any relevant information regarding licenses, public stock exchange trading and business background should be included in the application. In the event the checks are not thorough enough, users are encouraged to flag any advertising they feel might be scams.
The restrictions are not unwarranted, with some reports suggesting as much as $9 million per day is lost to cryptocurrency-related scams. Further reports this year have estimated as much as 80% of all ICO’s are fraudulent.
Following the original ban in January this year, similar policies were enforced by Google, Twitter and Snapchat – some of which have also loosened up restrictions recently.