Meta has loosened its longstanding ban on cryptocurrency ads that blocked most crypto companies from running ads on its platform. Its new policy has expanded the number of regulatory licenses the company accepts from 3 to 27. Facebook, now Meta, banned all crypto ads in 2018, preventing cryptocurrency and blockchain startups from promoting and reaching new customers through Instagram and Facebook.
According to the company, the crypto market has matured and stabilized enough and this was the ground for their change of heart. In addition, the company cited increased regulatory measures that justified their move, as seen in the post “Expanding Eligibility to Run Ads About Cryptocurrency.” Previously, the company required advertisers to submit data, including obtained licenses and other public background information about their blockchain. However, cryptocurrency businesses will still require permission to run ads of any crypto transaction that allow buying, selling or swapping tokens. Any business that fails to submit the 27 required licences will not be rejected. Consecutively, cryptocurrency businesses that were earlier left out can now run ads on the platform and attract numerous potential investors.
The increased exposure, although majorly beneficial, has its downside. While advertisers will target the platform’s large following to market their cryptocurrency, it will also open an opportunity for scammers to exploit ignorant groups who are yet to understand the crypto market dynamics. Scammers are not new in the crypto space. However, the industry continues to grow and consistent inspection of tech giants and regulators will lower the likelihood of such risks. Meta is working on a megaproject known as the “metaverse project”, which has drawn attention from the cryptocurrency community and fans outside the crypto space.
Meta’s Diem Currency
The stable coin project that the company has run independently for over a year, Diem, has been having a rough time. The company anticipated launching its asset for almost two years, as shown in its regulatory objections and scaling ambitions reports. Recent reports are not very optimistic that the company will launch it before the end of the year.
Just recently, David Marcus, the crypto overseer, reported that he was leaving the company. Marcus had spent over a year trying to launch Novi and only succeeded with a small test run. Although his move might be unrelated to the new policy, the timing is notable. Since announcing its plan for a digital wallet and a currency, Meta has received a stiff comeback from regulators and lawmakers from different corners of the world. United States democratic senators also asked Meta Company to abandon its Novi crypto wallet project.
