Facebook plans to ease its long-running ban on crypto bans. The social media giant will allow ads for reputable crypto coins like BTC to be promoted via its ad platform. Facebook, which recently rebranded to Meta, said that it would be expanding the number of regulatory licenses it accepts for crypto firms from three to 27.
Great News For The Crypto Sector
Since 2018, Meta has had a blanket ban on crypto advertising through its platforms. Besides Facebook, many other platforms including Google, and Twitter also announced bans on crypto advertising the same year. At the time, they cited the high level of scam coins and ICOs that were being promoted. In the case of Google, it restricted most crypto ads, except for those from crypto exchanges. However, Google has also since eased restrictions, and now allows crypto wallets to place ads via its platform.
The reversal of policies on crypto advertising is good news for the sector. For years, crypto projects have had to rely on other means to promote their projects. For instance, they have worked with influencers or other smaller platforms, which has restricted their reach. The reversal will make it easier to find potential investors for projects.
What Industry Leaders Had To Say
Henry Love, a managing partner of Fundamental Labs, which has invested $500 million in the crypto sector, said that it could be a game-changer for mass adoption. According to a CNBC report, the move will allow more retail investors to access the crypto sector.
In the same report, Emad Hasan, a former Facebook employee said that it was great news for startups. Hasan noted that many companies had been in a sport where they could not drive people to their projects. The reversal will make it possible for ordinary people to enter the crypto sector.
Details Of The New Crypto Ads Policy
In a blog post, Meta stated that the crypto sector had matured and stabilized. It also pointed to growing government regulation, which has set clear responsibilities and expectations as a justification for its policy reversal.
Before the new policy, Meta required several signals to confirm the eligibility of a company advertising crypto-related products or services. For instance, they needed to provide any licenses that they had, proof that they were publicly listed, and other public background data. From now, companies will only need to provide a license from one of the 27 approved licenses to be allowed on the platform. However, advertisers will still need written permission from Meta to promote crypto exchanges, crypto mining hardware, and software, crypto wallets, as well as crypto lending and borrowing products.
Facebook’s Digital Currency Project
For some time, Meta has been working on a digital currency project called Libra. However, regulatory backlash caused the project to be scaled back. Despite this, the company has not given up on it. Instead, it has continued to work on related products, including the release of a crypto wallet called Novi. It also announced that it had renamed Libra to Diem.
Summary
The policy change shows the resiliency of the crypto industry. While there has been an effective ban, which has made it hard to reach the masses, the sector has still grown organically. The new policy by major ad platforms will make it easier to reach the masses.
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