Facebook and Instagram have decided to relax regulations of the existing crypto ads.
Cryptocurrency ads on Facebook and Instagram are going to get a lot easier now. In its press release, Meta stated that the cryptocurrency ecosystem has developed exponentially over the years and it has stabilized by a huge margin in recent years. The company has also acknowledged that after witnessing increased government regulations leading to clearer crypto norms in countries, it has finally decided to relax some of its existing rules of crypto ads.
Meta hopes that the changes will allow more small businesses to grow their audiences and reach a greater cross-section of customers, which might be a paramount step to boost crypto adoption. Currently, a total of 27 regulatory licenses have been accepted, including BitLicense, as well as accreditation issued by the U.K.’s Financial Conduct Authority, Hong Kong’s Securities and Future Commission, and the US-based Financial Crimes Enforcement Network.
The changes will affect advertisers who already had the permissions to market their products on Facebook and Instagram. Written authorizations will only be necessary for crypto exchanges, digital wallets, lending platforms, and companies that provide mining hardware and software.
The Continued Struggle for the Market
This is a monumental step taken by Meta to help minimize and eventually eradicate some of the uncertainties revolving around crypto advertising for small businesses.
Earlier in August, Google also relaxed its rules by allowing crypto exchanges and wallets in the US to promote services only if they met Google’s requirements. But there are still certain limitations that remain persistent. Initial coin offerings (ICO) continue to stay prohibited, along with DApps that fall outside regulations. It is still obscure as to how these particular restrictions could be relaxed, and it might especially problematic for the ever-growing world of decentralized finance.
Cryptocurrency advertising has faced several controversies in recent years. Some politicians in the UK have recently called for it to be banned altogether, which exponentially impacted the crypto market. Tech giants have also been struggling with various types of scams and crypto frauds.
These obstacles continue to prevail, indirectly effecting the crypto market.
