Five months after it placed a ban on all cryptocurrency related Ads, Social Media giant, Facebook Inc. has made it known that it is reducing its ban on all crypto Ads on its platform. Although the ban that was placed on all cryptocurrency ads on Facebook was also extended to initial coin offerings (ICO), the social media company has made it known that the ban on initial coin offerings has not been watered down, regardless of the fact that the one on cryptocurrency related ads has been looked into.
Facebook has also gone on to reveal that it is looking forward to feedback from its users after this change is put into place.
Facebook Latest Policy on Cryptocurrency Ads Placements
The ban on cryptocurrency ads by Facebook Inc. might have been removed. That however, still does not give everyone unrestricted access to post cryptocurrency related ads on Facebook. At the moment, Facebook has laid down rules that will put some form of restriction on the placement of cryptocurrency related ads on its platform. As it stands, for any company to place ads for digital currencies on Facebook, such company would have to present documents which will stand as proof that the digital currency that is to be advertised is being traded on a public exchange.
This new development simply implies that not every company will be qualified to place a digital currency ad on Facebook. If a company does not meet the requirements for placing ads for digital currencies on Facebook, then, such company will not be given the permission to place an ad. According to Rob Leathern, Facebook Product Management Director, the giant social media company will look into feedback from regarding this new policy. With this, a decision will be taken on whether to continue with this policy or try out something better.
The Ban on Initial Coin Offering Still Remains Untouched
Initial coin offerings are one of the methods that are currently made use of by start-ups to raise capital. Well, according to Facebook, initial coin offering ads will not be allowed on Facebook. One reason for this is the fact that initial coin offerings have become an element for fraudsters to carry out their activities. Also, initial coin offerings are still very much unregulated and are known to experience massive swings.
Although there have been many cases of fraudulent activities that are carried out through the use of initial coin offerings, prominent among them is the ICO BY AriseBank, a Texas-based firm which got shut down by the United States government after it was discovered that this firm made use of celebrities to cheat investors in an initial coin offering.