Facebook Business conveyed on 08 May about updates to advertising policies related to cryptocurrency, blockchain, financial products, and services.
Facebook commenced by informing that last year there were updates to advertising policies which mandated written approval to advertise crypto products. The social media giant clarified that since then it has gathered feedback and evaluated the effectiveness of the policy. Facebook made it clear that people still need to apply to run ads related to cryptocurrencies. However, the rule has been relaxed, with pre-approval no longer needed for blockchain ads.
Facebook further expressed salient aspects of policy update as –
“And starting 5 June, we will update our Prohibited Financial Products and Services Policy to no longer allow ads promoting contracts for difference (CFDs), complex financial products that are often associated with predatory behaviour. These products, due to their complexity, often mislead people. We’ll also continue to ban ads for initial coin offerings (ICOs) as well as ads for binary options.”
Facebook expressed that in line with all the ads on Facebook, the media’s text, targeting, positioning, images and content on the landing page should comply with the updated policy. There should also be adherence to Advertising Policies and Community Standards. Facebook quoted an example that if an ad directs to a page that features a restricted product, it would require prior approval. Landing page which includes a prohibited product would be rejected.
Last month, MakersPlace shared an announcement about receiving 2 million U.S. dollars as seed financing from reputed investors. The funding was spearheaded by Uncork Capital with participation from Draper Dragon Fund and Abstract Ventures. Several other high-profile investors also contributed, including veteran leaders like Pinterest, Facebook, and Coinbase. The investors bring years of experience launching, building and supporting novel platforms.
Facebook had provided some leniency on its sweeping ban on blockchain and digital assets. The original restrictions were introduced early last year and were brought into effect in the middle of the year. This new updated policy comes at the moment when the social media major is planning to launch its own cryptocurrency later in the year.
Facebook finally indicated that they were committed to preventing misleading advertising on their platforms. This was especially applicable to financial products and services. Due to this measure people who want to promote cryptocurrency and closely related products have to go through a review process. This process would continue to take account licenses they have obtained. This is irrespective of whether they are traded on a public stock exchange or other relevant public businesses.