On Wednesday, Facebook made an announcement that proved to be good news for the crypto domain in general. The company has decided to relax its crypto ad restrictions thereby opening up more doors for cryptocurrency companies. The restrictions to run ads on popular platforms like Instagram and Facebook was a major disadvantage for start-ups using blockchain technology and so on, since they couldn’t leverage the popularity of these platforms to market themselves. With this new relaxation of the ad policy, these companies will get a better chance to expand their horizons of growth and development. Overall, it cannot be denied that it is a rather significant step for those who have invested in crypto.
The What and Why
Facebook’s long-standing policy concerning cryptocurrency ads had proved to be a rather big roadblock for cryptocurrency companies. This step to relax the restrictions comes after a failed attempt of the company at launching its own cryptocurrency. On Tuesday, David Marcus who is in charge of the company’s crypto efforts made an announcement stating that he will leave the company by the end of this year. Perhaps, it was the slightly sour grapes that prompted the company to sweeten its attitude towards crypto in general. Sour grapes or not, this step is a huge win-win for cryptocurrency companies.
When the restrictions were in place, the advertisers were required to submit an application, complete with information concerning the license obtained, the stock exchange in which it was traded, and so on. And now, the company has magnanimously expanded the number of regulatory licenses from a mere 3 to 27. A cryptocurrency company with any one of these 27 will be eligible to advertise on the platform. This is what Meta had to say about this new development concerning cryptocurrency, “We are doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry.”
Back in the year 2018, the company had placed a ban on cryptocurrency ads preventing startups in the crypto and blockchain fields to leverage the platforms to facilitate the promotion of their work and to expand their customer base. Although this ban was relaxed to an extent in 2019, the restrictions were still in place and acted as a hindrance for the startups. The new policy will be greatly beneficial for retail investors, allowing them better access to cryptocurrencies in general. And with the advertising activities in place, it will also lead to the better adoption of crypto.
Goodness, how their tune has changed since 2018, when #XYO could hardly get an ad approved.
The crypto community has done a lot of hard work to push that shift in thinking.