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Facebook relaxes policy around crytocurrencies; lifts ban on crypto ads

The company has allowed advertisements dealing with cryptocurrencies on the social network platform. However, there will be an application process to ensure any misuse of the relaxed policy.

twitter-logo BusinessToday.In        Last Updated: June 27, 2018  | 17:59 IST
Facebook relaxes policy around crytocurrencies; lifts ban on crypto ads

Facebook is making a U-turn with its policy on cryptocurrencies. The company has allowed advertisements dealing with cryptocurrencies on the social network platform. However, there will be an application process to ensure any misuse of the relaxed policy.

In January, before Facebook dealt with the Cambridge Analytica disaster, the social network had declared that it will be blocking advertisements that promote cryptocurrencies. One of the main reasons behind the decision of banning these ads was the alleged misleading ads and deceptive promotional practices.

In January this year, popular cryptocurrencies like Bitcoin were riding on a high tide with a value of a single bitcoin reaching $19,000. During that phase, there was a sudden spike in crypto ads. A lot of these advertisements were reported as misleading or deceptive which led to Facebook banning the practice altogether.

Bitcoin value slumped in the next few months and stablised to a certain extent. The stable value could be the reason why Facebook is partially allowing crypto ads to run on the social network. The ads will have to be approved by Facebook through an application process. The ban still stands for ads that promote binary options, ICOs and initial coin offerings. To get their application approved, advertisers will have to show "licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business."

The renewed interest in Blockchain entities could be attributed to Facebook's own investment in Blockchain technology. The rejig of high ranking executives in May also created space for a new Blockchain division. David Marcus, the executive who was overseeing Facebook's messaging products, including Facebook Messenger has been placed at the helm of this new Blockchain division.  

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