Facebook Will Lift The Pre-Approval Condition On Cryptocurrency, From June 5
The year 2018 was indeed a disastrous one for the crypto space, not only in terms of declining values but also in terms of scams and frauds. Many crypto companies were accused of posting misleading ads, and after a few grave incidents, Facebook decided to impose strict restrictions on crypto related advertisements.
In fact, Facebook wasn’t the only mega platform to prevent crypto ads. World’s biggest search engine Google did the same. In reality, crypto companies were plagued with false claims through 2017, which bumped token prices to almost unreal numbers. Surveys have shown time and again how several crypto exchanges manipulated trading volumes to attract new users, which resulted in the boom of 2017.
However, the bubbles finally burst in 2018, as the market witnessed the worst ever decline. As inquiries and investigations started, it appeared that misleading advertisements were a major cause for the downfall, and hence, platforms like Facebook and Google have criticized for their “careless” policies. Consequently, the restrictions were imposed.
In its blog post on its social networking platform, Facebook stated that they have taken extensive feedback from and will be amending policies accordingly. Currently, companies require prior written approval to advertise their crypto products and services on the platform. From 5th June, the updated policy will no longer require pre-approval for ads related crypto industry news, education or events.
The company further stated,
We’re committed to preventing misleading advertising on our platforms, especially in the area of financial products and services. Because of this, people who want to promote cryptocurrency and closely related products, such as cryptocurrency exchanges and mining software and hardware, will still have to go through a review process.
The crypto space is expanding, and the drawback of this is that the number of unaware investors will be more as compared to enthusiasts. The 2017 bitcoin rally created a huge spur across the globe, which made general investors to explore the crypto space.
However, these investors who aren’t necessarily familiar crypto trading, are heavily influenced by advertisements. This makes new entrants more vulnerable to fake companies, and false advertisements. Nonetheless, the eased policies will help genuine companies to create awareness among newbies, which will be a great benefit for all.