Several months after Facebook, Inc. (NASDAQ:FB) banned cryptocurrency ads on its platform, the social media giant seems to be making a U-turn on the matter. After what it termed as a careful review of its policies, Facebook has announced that it will allow certain approved ads to run on the platform. Facebook has since approved Coinbase, the largest digital currency in the US to run its ads on the platform.
Building an open financial system
In a tweet, Coinbase announced that the company received the green light from Facebook to start promoting itself on the social media platform. Coinbase expressed a lot of enthusiasm on the decision. The company noted that with Facebook at its disposal, the exchange is well placed to contribute to the establishment of an Open Financial System, in which there is free flow of information.
The ban on crypto-related ads
At the start of this year, the cryptocurrency industry witnessed an increase in crypto companies promoting themselves and the services they offer. Many companies took to social media and other public platforms available. With this increase in crypto ads came the rise in cryptocurrency-related scams in which unsuspecting customers lost billions of dollars at the hands of criminals.
It is the growing cases of scams that got the attention of major tech companies. Facebook, Twitter Inc (NYSE:TWTR) and Alphabet Inc (NASDAQ:GOOG) banned crypto-related ads on their platform for this reason. Facebook has become the first social media company to lift the ban on the industry.
Following the lift on the ad ban, Facebook has announced that it will be putting in place a new system that will filter ads to ensure that only those from bona fide companies are listed. Companies whose investment opportunities are questionable will be blacklisted.
To advertise on the platform, prospective crypto advertisers will be required to produce the relevant licenses as well as information regarding the product or service to be advertised.
Rooting out rogue players
Facebook has taken the new steps to ensure that customers on its platform don’t fall prey to scams. There have been calls from stakeholders for a united approach towards getting rogue players out of the sector.
