Facebook, once again took a U-turn over its cryptocurrency advertisement policy. Prior to this, the giant social media firm in January 2018, had imposed a ban on blockchain and cryptocurrency advertisement completely. However, later in June 2018, the company slightly modified its crypto ads policy, further allowing companies to use its platform to promote advertisements relating to cryptocurrency and blockchain technology with a regulation that companies need to take written permission to do so.
Now, Facebook again modified its crypto advertisement policy and is removing the 2018 ban on the emerging technology related to crypto ads over its platform. This is a significant move and will enable several companies powered by cryptocurrency to boost their cryptocurrency related products and services on the Facebook platform- the largest social media network.
The crypto community believes that Facebook has taken this step so as to accelerate its own blockchain effort in order to develop its Stablecoin. Facebook’s Stablecoin will be used within a few of its applications. Designing its own digital coin will further allow several of its users to adopt cryptocurrency.
Companies need No Prior Approval
According to reports, The Company relaxed its previous ban on crypto assets in June. The June guideline allowed companies to take prior permission for promoting ads regarding cryptocurrency events, industry news and blockchain technology. The Facebook quoted its new move as:
“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.”
As per the Advertising Policies and Community Standards of Facebook, there are few products and services that are still within a prohibited list namely ICO offerings and exchanges are within restricted list. Companies promoting crypto ads do not need any prior permission; however; those restricted still needs to take permission and requires going through a new process.
The new process includes considering the licenses they have received if they are trading on a public stock exchange or no and appropriate public history of their business.
Facebook’s own Stablecoin
The tech giant company has recently announced of developing its own Stablecoin. This important update relating to crypto ad policy is in accordance with its crypto and payment platform development. Thus Facebook was left with no other choice than updating its policy and allowing for the promotion of cryptocurrency. This move is going to open wider opportunities for crypto assets.
The Stablecoin is named as Libra, and the coin will be supported by government currency. The name ‘Libra’ was acquired by Facebook in April 2019, from an unidentified tax company. Facebook’s Stablecoin will enable WhatsApp users to send crypto related payments to each other.
Meanwhile, Facebook stated that the ban on ICO’s will not be uplifted and from June 5th onwards, they will include contracts for difference (CFDs), CFDs are complicated derivative products of finance that are linked with inhuman behavior.
Crypto Analyst View
Few crypto analysts expect that Facebook’s launch of its own cryptocurrency will benefit Bitcoin and other digital currencies.
Blockchain Capital’s Spencer Bogart told Bloomberg that the new Facebook project named ‘Project Libra’ might allow new users to enter the digital asset market and also to explore more about decentralized crypto assets.
Many crypto users believe that the Stablecoin will be in tough competition with the country’s dollar and other fiat currencies and not with Bitcoin.