Cryptocurrency Advertising Returns To Facebook
Facebook released a statement detailing an updated set of guidelines to advertising cryptocurrency on their site. These new guidelines loosen up the previously set forth crypto-wide advertising ban.
Previously, in January, Facebook announced a policy that prohibits 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.
Going forward, a pre-screening process will be used to approve advertisers looking to engage in promoting cryptocurrency and related content. Rob Leathern, Product Management Director at Facebook, states that that advertisers 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.
On June 25th, the FTC held a workshop “Decrypting Cryptocurrency Scams” in order to inform consumers on the emerging ways scammers are becoming more active in this space, including; deceptive investment and business opportunities, bait-and-switch schemes, and deceptively marketed mining machines. Andrew Smith, Director of FTC’s Bureau of Consumer Protection, stated the dollar figure scammed could rise to billions by the end of the year.
This updated approach toward advertising attempts to give Facebook users exposure to meaningful insights surrounding the cryptocurrency space. As with the initial ban on all cryptocurrency related advertising, this updated set of guidelines still restricts the promoting of ICOs and binary options trading. This is a step in the right direction as millions of users will be better informed regarding the space.