Facebook to alter its ads policies for financial services
Social media giants such as Facebook, Twitter, Snapchat, etc. have already banned the advertisements for initial coin offerings (ICOs) and cryptocurrencies. Even Google has also implemented a ban on cryptocurrency advertising and related content that includes initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice, etc.
Facebook, in January 2018 announced several alterations to their list of advertainment policies. The new policy states that “Ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.”
On May 8th, Facebook has further updated its advertising policies regarding blockchain, cryptocurrency, and financial products and services. As per Facebook’s ads policies dated back on last June, one should have to acquire written approval prior to publishing the cryptocurrency products and related services on Facebook. Through the recent announcement, Facebook has completely eliminated the requirement written approval and allowed the people to post advertisement related to blockchain technology, digital currency news, educational content and events related to cryptocurrencies. Facebook has come to this conclusion after reviewing the feedback received from several individuals.
They have further announced that they will further alter their ‘Prohibited Financial Products and Services Policy’ which will be effective from 5th June. According to the official Facebook blog post, they will strictly ban the ads promoting contracts for difference (CFDs), complex financial products that are often associated with some sort of Ponzi schemes. Due to the lack of understanding of these financial products they often mislead the investors and common people resulting in complete devastation of their wealth. “We’ll also continue to ban ads for initial coin offerings (ICOs) as well as ads for binary options,” Facebook said in an official blog post.
Being a responsible social media platform, Facebook said that ‘they will continue to ban the misleading advertising on platforms, especially in the area of financial products and services.’ Individuals who want to advertise their cryptocurrencies and related products and services i.e. cryptocurrency exchanges, wallets, mining software, and hardware, etc. will have to go through a review process first.
“As with all ads on Facebook, we require that the ad’s text, targeting, positioning, images and content on the landing page comply with this updated policy as well as with all of our Advertising Policies and Community Standards,” as stated in an official Facebook blog post. By altering their advertisement policies continuously Facebook is making sure that all the misleading ads have no place on the platform.