With various developments happening in the crypto sector and eying huge scope in tapping advertising revenue, Facebook (Meta) has decided to end the ban on cryptocurrency advertisement on its platform.
Facebook, which changed its name to Meta on 29 October 2021 has been looking to enter the cryptocurrency market since 2018 with the launch of Libra, later changed the name to Diem. However, a few months back, when it launched crypto wallet, Novi, it was criticized by many US lawmakers.
The announcement comes at the time when Meta Platforms Inc (formerly Facebook) cryptocurrency head David Marcus said that he will be leaving the company by the end of 2021.
Marcus was heading Facebook’s own currency plans with a mission to start with an e-payment method and branch out into broader ventures in the future. Its departure was probably the last blow for Meta’s currency ambitions.
Till now, the company has failed to launch a cryptocurrency that could be used to send money online to anyone in the world via Facebook products.
On 1 December 2021, the social media platform company announced, that looking at the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry, it is easing to run ads about cryptocurrency on our platform by expanding the number of regulatory licenses we accept.
These changes will help to make our policy in this space more equitable and transparent and help more advertisers, including small businesses, grow their audiences and reach more potential customers, the statement adds.
The company said that now eligibility criteria for running ads about cryptocurrency have been increased to 27, as compared to three accepted earlier.
But the criteria for selecting the list of products and services that require pre-approval won’t change.
Prior written permission is required for Platforms, software apps or products known as cryptocurrency exchanges, trading platforms offering spot trading, margin trading, futures trading or other trading instruments that involve cryptocurrency assets; Platforms, software apps or products that offer cryptocurrency lending and borrowing; Cryptocurrency wallets that also allow people to buy, sell, swap or stake their cryptocurrency tokens; and Hardware and software for cryptocurrency mining, the statement underlined.
Commenting on this development, Fundamental Labs managing partner Henry Love said, “With more openness and transparency for what crypto companies can do, we will see more adoption for the cryptocurrency industry and the metaverse than ever before.”
Love, a former employee on Facebook’s small business team said, “This is a game-changer for mass adoption.”
Emad Hasan, another former Facebook employee, said the new policy will also be a boon for start-ups working on blockchain, which is the technology used to make cryptocurrencies work.
Facebook has been trying for years to beat the crypto sector by launching its own token and has been creating pressure on crypto start-ups by blocking their advertisement for long. But, when this didn’t work, it is now trying to enter the sector from the back door, by entering Metaverse space.
It reminds me of the line which I have read many a time in books, ‘If you can’t beat them, join them‘
This is what Facebook has done, but, hopefully, this was a Klever decision by the company.
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