- The management of the social network Facebook decided to change a long-standing policy that did not allow most cryptocurrency companies to advertise on their platform.
- The number of accepted licenses has been increased from 3 to 27 .
- As reported on Facebook, the new rules took effect on December 1
As reported on Facebook, the new rules took effect on December 1. They are intended to make the social media policy towards the cryptosphere fairer and more transparent, as well as help advertisers (primarily small companies) to expand their audience and attract more potential customers.
“We are doing this because the cryptocurrency landscape has continued to evolve and stabilize in recent years, and there have been more government regulations setting clearer rules for the industry,” the company said in a statement.
Now, licenses regulating the activities of the digital sector, issued by the relevant authorities of 23 countries of the world, are being accepted. Ukraine, of course, is not among them, since President Volodymyr Zelenskyy vetoed the law “On virtual assets” adopted by the Verkhovna Rada.
All previously approved advertisers will not be affected by this change. And for a number of products, you will need to obtain written permission from Facebook, as before. Among them:
- cryptocurrency exchanges and platforms that trade cryptoassets;
- platforms, applications or products offering crypto lending services;
- wallets with the function of buying, selling, exchanging or staking cryptocurrencies (generating income from storing tokens);
- hardware and software for mining.
Also read: How ETH Mining pool innovated to pay miners saving $10M USD in fees
Facebook and cryptocurrency
The ban on advertising cryptocurrencies on the company’s platform was introduced in January 2018. In May 2019, it was weakened a little, but this still prevented crypto projects and blockchain startups from advertising their work.
However, with its own cryptocurrency, on which the Facebook team has been working for several years, it did not work out. In 2018, it became known about the company’s intention to release its digital currency Libra and a wallet for storing it in Calibra in 2020.
After a sharply negative reaction from financial regulators in the United States and other countries, many partners of the developers refused to participate in the project. The corporation had to change its plans.
To mitigate the negative impression, Facebook’s crypto projects were rebranded in May 2020 – the Calibra wallet was renamed Novi, and Libra – Diem. In addition, the cryptocurrency has become a stablecoin, but it has not yet been released.
As already reported by OBOZREVATEL, the US Federal Reserve has named stablecoins as one of the main threats to the country’s financial stability. The Fed explained this by a number of vulnerabilities for this type of digital assets.
