Facebook could not resist reversing its stand on banning ads anything relating to cryptocurrency. The social media firm will now enable preapproved advertisers to not only promote their businesses but also their services such as the digital coin exchange. However, the company is still wary of initial coin offerings (ICOs), and the ban is still enforced. The move comes at a time when the digital currency market is facing a lot of pressures from the regulators.
License For operations
Though Facebook has reversed its decision on banning ads, the company is taking precautionary steps to prevent any illegal activities. For instance, an advertiser should submit an application for processing to be approved by it. Only then, an advertiser could place ads promoting their crypto products in social media. Also, an interested advertiser is required to show licenses from the concerned regulators and that whether they are traded on any public stock exchange besides other relevant data about their business. Once this process is over, the advertiser would be provided with permission to run their ads about crypto products.
At the same time, the company has shown its restraint and continued to enforce a ban on ads promoting either ICOs or binary options, recode.net reported. In January, the social media firm has resorted to banning every ad relating to virtual assets at the height of the surge in most of the digital coin prices. The objective was to curb promoting any services and financial products that had the potential to mislead and deceive investors. It was not the only firm, but others like Google or Twitter have also resorted to similar moves.
In December last year, the prices of every cryptocurrency have reached their lifetime high. As a result, the bitcoin price hit nearly $20,000 on December 17 last year. The sudden rush in the virtual currency has made consumers go mad forgetting to look at the business prospects or genuineness. That forced companies like Facebook to slap a ban on ads promoting crypto products.
Since then, the bubble in the digital currency has dropped considerably if the current price of bitcoin is of any indication. However, the same cannot be said in respect of either binary options or the ICOs. That weighed in taking a stand on reversing the ban on ads promoting crypto.
Though there are different opinions, Facebook understands that the digital currency sector is not only growing but an exciting one with immense potential for advertisements. Therefore, social media does not want to lose the opportunity of selling crypto ads as long as the company does not see any of its users getting scammed. The move meant generating additional revenue for it.
Additionally, the company appears to start thinking that the craze towards digital coin is legitimate. It was also one of the companies that showed interest in the blockchain technology by creating its own internal team early this year. It is the foundation for every virtual asset, and if reports are true, social media could take a hard look later at the digital currency sector.