Today, Facebook saying that it is a relaxing restriction on advertisements for cryptocurrencies and blockchain technologies on its platform. Last January 2018 when the ban arose and when the social network giant rolled out a blanket restriction in all ads, featuring cryptocurrencies or initial coin offerings which a method of crowdfunding in a new project and startup by putting in the market of blockchain – based tokens.
ICOs had a become a vital capitalize path for blockchain startups weren’t above board, and that is the reason for the ban at that time. $10 billion in 2017 was the total of estimated fund from ICO’s, and 11 billion in the year 2018, as per Coin telegraph. But the report was looking at the profit rate of ICOs last 2017 from advisory firm statistic group. Which revealed the 80% are scams, such a high point likelihood that any group given ICO could be fraud, Facebook avoid taking any ads mentioning cryptocurrencies, blockchain or ICOs, inclusive cryptocurrencies such as Bitcoin Litecoin and Ethereum. Social media including twitter, facebook, google LLC, was ban the cryptocurrencies ads last June and Facebook began to allow some blockchain-related ads, but not too many. In the policy of cryptocurrency, ads are required for pre-approval from the company’s Facebook product Management team and need to follow Prohibited Financial Products and service guidelines of it.
Cryptocurrency products updated the ads policies as a requirement prior to written approval to advertise.
According to the blog post by Facebook:“Since then, we’ve listened to feedback and assessed the policy’s effectiveness. While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.”
In the new policy, ICO is still banned, and the issue of use cryptocurrency or tokens, such as blockchain startups, for as long as tokens are not being putting in ads for selling as crowdfunding are alright, which also opens up too many grounds for startups just to advertise themselves as they were putting blockchain technology just to use for company like industrial, enterprise financial and educational, since some of those products and services came extremely close to the same sort of activity seen in ICOs:
Facebook said, the policy will remain to restrict certain financial services to pre-approval.“We’re committed to preventing misleading advertising on our platforms, especially in the area of financial products and services”
Additional on that, As per Facebook “Because of this, people who want to promote cryptocurrency and closely related products like cryptocurrency exchanges and mining software and hardware, will still have to go through a review process.” The relaxation on blockchain-related ads restrictions came short in the period of time after a report revealed intentionally Facebook raise $1 billion just to develop its own blockchain-based cryptocurrency payment system. The proposal would produce a token that could be used for monetary exchange and a competitor for payment networks such as Mastercard and Paypal.