Meta Platforms Inc., the parent of Facebook and Instagram, announced on Wednesday its decision to roll back a long-standing policy that prevented most cryptocurrency companies from serving ads on their social networking platforms.
Previously, advertisers, such as exchanges or crypto wallets, who wanted to promote cryptocurrencies or related businesses had to submit an order including all licenses they obtained. In addition, they had to inform if they were traded on a public stock exchange, among other information.
Now, the company is expanding the number of regulatory licenses accepted from 3 to 27.
“We are doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years. In addition, it has seen more government regulations that are setting clearer rules for its industry,” the company said in a statement.
Crypto Ad Bans
The company banned cryptocurrency ads in January 2018. This came after a series of initial coin offers ended up deceiving many consumers.
The ban prevented startups linked to digital assets and blockchain from promoting themselves and reaching customers on Facebook and Instagram.
In May 2019, Facebook slightly reduced this ban. The company no longer requires pre-approval for blockchain-related ads, industry news, education, or cryptocurrency events.
As Henry Love, a former Facebook employee, pointed out to CNBC, the company’s new policy is huge for the crypto industry. After all, it will allow more retail investors than ever to access this cryptocurrency market:
“With more openness and transparency into what cryptocurrency companies can do, we will see more adoption from the cryptocurrency industry and the metaverse than ever before,” said Love. “This is a watershed for mass adoption.”
Facebook/Meta cryptocurrency plans
Facebook significantly reduced its own cryptocurrency ambitions in the past year. After laying out plans to launch the Libra digital currency and the Calibra digital wallet in 2019, Facebook has faced strong backlash from lawmakers and regulators around the world.
So Facebook revamped the project, which became Diem, and launched the Novi digital wallet in October.
However, it is not known whether the cryptocurrency project will come out of the paper. Even more so now with the resignation of project manager David Marcus.