Meta Platforms Inc., the parent of Facebook and Instagram, is making it easier for companies to run advertisements promoting cryptocurrencies on its social media pages as the regulatory landscape for the digital coins matures.
Previously, many marketers who wanted to promote cryptocurrency or related businesses had to submit an application including any licenses they have obtained and whether they are traded on a public stock exchange, among other information. Now, the company will accept an ad if advertisers, such as exchanges or crypto wallets, have one of 27 eligible regulatory licenses. Ads from parties advertising things like crypto events continue to be exempted from having to seek pre-approval.
The ad rules change is happening just as Meta’s marquee crypto-related effort has been downsized. After unveiling plans to create a slew of new digital coins two years ago, Facebook and its partners have had to dramatically scale back their plans following an onslaught of regulatory and congressional scrutiny. Earlier this year, the company launched a pilot program for sending remittances using a rival, existing coin — a far cry from its initial ambitious plan. The project’s creator, David Marcus, said on Nov. 30 that he is leaving the company.
Meta’s stance on crypto ads has changed dramatically over the last few years as well, as regulators provided more clarity and cracked down on bad actors. Facebook first started blocking ads promoting digital coins in early 2018, after a spate of hundreds of Initial Coin Offerings ended up scamming many consumers. That June, Facebook began allowing ads from advertisers who received prior written approval. In May 2019, the company started to no longer require pre-approval for ads related to blockchain technology, industry news, education or crypto events.
“This change will help make our policy more equitable and transparent and allow for a greater number of advertisers, including small businesses, to use our tools and grow their business,” the company said in today’s blog post.
Advertisers who were previously approved won’t be impacted by the change. Meta will still require prior written approval for advertisers that are cryptocurrency exchanges and trading platforms, companies involved in lending and borrowing, crypto wallets with capabilities such as trading or staking, and companies that advertise hardware and software for mining.
“Cryptocurrency continues to be an evolving space and we may refine these rules over time as the industry changes,” the company said in the blog.
