Facebook Reverses Its Cryptocurrency Ad Ban

By M. Russo — Published June 27, 2018

Facebook Reverses Its Cryptocurrency Ad Ban

Six months after Facebook enacted a ban on cryptocurrency advertisements, the social media giant is reversing its policy. Facebook first banned this type of advertising in January due to the number of scams. The ban also affected binary options and initial coin offerings, as Facebook noted that "there are many companies advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith."  The goal was to protect scammers from profiting off of Facebook users.

With the reversal, pre-approved cryptocurrency advertisements will be allowed, though binary options and ICO ads will continue to be blocked. Cryptocurrency advertisers will be required to fill out an application with details such as whether they are a publicly traded company, what licenses they've obtained, and other relevant information.

source: gettyimages

According to the FTC, consumers lost $532 million to cryptocurrency-related scams in juts the first two months of 2018. It's expected that consumers will lose more than $3 billion total by the end of the year. This month, Google began restricting the advertisement of cryptocurrencies, binary options, and related content. Microsoft reported in May their plan to ban advertising for cryptocurrency and binary options. Twitter only allows cryptocurrency ads for publicly trade companies.  

The new Facebook policy is in effect immediately. The company says it is a work in progress: "We'll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time," Product Management Director Rob Leathern said. In the meantime, Facebook wishes to remind users to continue to flag content that violates its guidelines.

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