May 9, 2019 | AtoZ Markets - Facebook has cancelled its cryptocurrency ban as the company announced on Wednesday, where it said that it would lift the ban on Blockchain related ads, allowing more companies that are working on these technologies to boost their efforts on the social network.
"We listened to the comments and assessed the effectiveness of the imposed policy… While we're still asking people to apply for ads that promote coded currencies, starting today, we'll be easing this policy to eliminate the need for prior approval for blockchain advertising, industry news, education, or events for encrypted currencies ", Facebook said in a publication on its business blog.
Facebook began blocking ads promoting cryptocurrencies and initial coin offerings in January 2018 because of fears that users might be tricked by offers from some crypto firms.
The company then announced last June that it would update its policy regarding the ban to allow ads from advertisers who received written approval only. Today, the ban policy has been withdrawn to allow many types of ads without the need for any approval.
“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.”, Facebook published at the time.
Facebook ban on ICOs and CFDs still stands
In January 2018, Facebook announced that “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.”
Facebook’s management has been criticized for this policy over the past year, so it seems to have realised today that it is useless, especially after it was reported that the policy affected emerging companies, such as Bloom- the US company, which specializes in helping people to control personal information on the Internet.
Reports said that the company had spent hundreds of thousands of dollars on Facebook ads to promote its services, to be surprised later that all of its ads were suddenly banned on the social media platform last October.
The company didn’t clarify the reason behind changing its policy in that context, while observers read the announcement as a potential prior step on the way of issuing Facebook's own cryptocurrency as some news referred to earlier.