Facebook updates eligibility criteria for crypto advertisement on its platform. This was made known on December 1st 2020, in an announcement by the company. The eligibility update is majorly concerned with crypto regulatory licenses and registrations.
Before now, Facebook accepted only 3 crypto licenses and/or registrations. This is to say that, advertisers who wanted to run crypto-related advertisements needed to submit an application first. And also attach any of the 3 licenses obtained, stating whether they are traded on any public stock exchange as well.
Meaning, you will not be allowed to run a crypto advertisement except you possessed any of the 3 licences only. Other valid licenses were not accepted by Facebook. This clearly limited the number of crypto advertisements on Facebook as at that period.
Interestingly, Facebook have increased the number of accepted regulatory licenses to 27. In giving reasons and motives for the welcomed increase of crypto licenses, Facebook commented thus:
“We’re doing this because 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.
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.”
Facebook and Crypto Advertisements
In January 2018, Facebook outrightly prohibited crypto advertisements on its space. The claim being that crypto ads were misleading and deceptive. That not withstanding, it won’t be totally wrong to note that by then, Facebook never fully embraced crypto and blockchain technology.
However, Rob Leathern (Facebook Product Management Director) equally wrote in the announcement that the policy could be revisited.
We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.
…we will revisit this policy and how we enforce it as our signals improve.
Fast forward to June 26 2018, cryptocurrency advertisement was being allowed on Facebook but from pre-approved advertisers. Meanwhile, ads promoting binary options and initial coin offerings remained banned.
Somehow, a limitation on crypto advertisements still existed. This limiting factor was the accepted number of crypto licenses by Facebook. But as promised, the cryptocurrency advertisement policies have been updated and will still be reviewed, if need be according to the company.
In consideration that cryptocurrency has matured, stabilized and experienced increased government regulation, Facebook is moving away from using a variety of signals to confirm eligibility and instead requiring one of these 27 accepted licenses. These updated licenses can be found on the company’s advertising policies page.
How to Make a Crypto Advertisement on FaceBook
To run advertisements that promote cryptocurrency trading or other products and services, you will need to have any of the 27 accepted licenses by Facebook. Having any of these licenses shows your project’s legitimacy.
The next step is to apply by filling the crypto products and services onboarding request form. Your application will then be reviewed and eventually granted or denied.
Facebook making the running of crypto advertisements on its platform easier is a big plus for cryptocurrency. These changes will definitely increase the number of advertisers on the social media platform. It will equally help crypto startups in growing their audiences and reaching more potential customers. Overall, crypto adoption will be enhanced.