Facebook is loosening its ban on advertisements that promote cryptocurrencies saying such content will be allowed on the social network after going through an application process to determine the safety and legitimacy of the products.
The company first said it was blocking such ads in January, noting that they were often associated with misleading and deceptive practices. Facebook will continue to prohibit ads for other risky financial products including binary options and initial coin offerings, according to a blog post on Tuesday.
Facebook’s application for approval to run cryptocurrency ads will look at aspects of the businesses that can ensure users aren’t getting scammed, including “any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business,” the company said in the post.
“Given these restrictions, not everyone who wants to advertise will be able to do so,” Facebook said. “But we’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time.”
The revised policy comes a few weeks after Facebook started its own blockchain division, to explore ways for the technology to be used in its products.
Full official announcement below:
In January, we announced a new policy to “prohibit ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.” At the time we also made clear that “this policy is intentionally broad while we work to better detect deceptive and misleading advertising practices… We will revisit this policy and how we enforce it as our signals improve.”
In the last few months, we’ve looked at the best way to refine this policy — to allow some ads while also working to ensure that they’re safe. So starting June 26, we’ll be updating our policy to allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings.
Advertisers wanting to run ads for cryptocurrency products and services must submit an application to help us assess their eligibility — including any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business. Given these restrictions, not everyone who wants to advertise will be able to do so. But we’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time.
It’s important that we continue to help prevent or remove misleading advertising for these products and services. So please continue to report content that violates our Advertising Policies by selecting “report ad” in the upper right-hand corner of any advertisement.