Meta, the new name for Facebook’s companies, has decided to reverse its ban on brands advertising Bitcoin’s products on its platforms. As such, any company who wants to advertise Bitcoin wallets, exchanges or other crypto assets will now be able to do so on Facebook, Instagram and WhatsApp. There are currently over three billion people using Meta products and it is another big boost for cryptocurrencies.
Prior to this U-turn, Facebook had required that any advertiser with crypto products would have to supply a lengthy amount of information about what financial licensing the products held, as well as information about whether they were listed on the stock exchange and so on. As such, only those crypto products with licensing from just three regulatory bodies would be allowed to advertise on Facebook’s platforms.
The ban was initially put in place in January 2018 and it meant that no advertiser would be able to use Facebook’s platforms to promote cryptos, initial coin offerings or binary options. While Facebook removed some of these restrictions in May 2019, it was still a move that was perceived to have put a big dent in the growth of cryptocurrencies.
However, all of that has now changed as Facebook will now accept advertising from crypto companies who hold licensing from 27 different financial regulators. The decision was made after Facebook said that there was now increased governmental regulation as well as the fact that the cryptocurrency marketplace had matured and stabilized sufficiently to make it a legitimate source of advertising revenue.
As a result of this change, the crypto industry is expected to make large gains as a result of more retail investors gaining exposure to cryptocurrencies.
Facebook’s stalled cryptocurrency plans
The decision to reverse a long-standing policy to ban crypto ads is something of an admission of defeat for Facebook. After all, the social media giant had long been rumored to be creating its own cryptocurrency. This was a project that was hoped to give people the ability to simply send money around the world.
However, with the news that David Marcus, the head of Facebook’s crypto projects, would be resigning, it means that the brand has had to perform an embarrassing U-turn. Facebook also faced a growing wave of negativity from financial regulators as a result of its crypto ambitions. While the Novi digital wallet was released this fall, its muted launch is a clear signal that Facebook is having to rethink its strategies regarding cryptocurrencies.
Such setbacks will do little to instal faith in Facebook who has been hit by a torrid series of problems in recent months. The brand has faced multiple accusations of promoting hate speech and misinformation, and it is this negative image that has forced Facebook to attempt a rebranding via the Meta moniker.
As a result, Facebook is having to go back to the drawing board with key decisions such as whether to accept adverts from crypto companies. With more revenues being drawn from advertising, Facebook will have little option but to cater to the undeniable rise of cryptocurrencies.