Key takeaways:
- Meta – formerly Facebook – has announced that they would expand the number of regulatory licenses they accept in order to increase crypto ad eligibility on their platform. The company now accepts 27 licenses, which are publicly available on their coverage web page, up from three previously.
- With the policy adjustment, Meta claims that their policy is more “equitable” and “clear,” and that it can help small businesses benefit from Facebook’s reach to grow.
As the regulatory framework for cryptocurrencies matures, Meta Platforms Inc., the parent company of Facebook and Instagram, is making it easier for businesses to run adverts promoting cryptocurrency on its social media pages.
Meta announced their ad expansion on their website the day before yesterday. That is, it appears to be a reaction to greater legislation of crypto over time, which has higher readability of commercial expectations. As a result, Meta has abandoned their case-by-case, multivariable approach to determining eligibility. As an alternative, they will rely on one of their 27 licenses.
That’s surprising, considering the Securities and Exchange Commission has long been chastised for instilling uncertainty in the crypto industry. Brian Armstrong, the CEO of Coinbase, has had several run-ins with the fee and has attempted to instill personal business expectations in order to help the system. Hester Peirce (called “Crypto mother”), a member of the fee, has expressed her dissatisfaction with the fee’s loss of growth on crypto law.
Meta’s flagship crypto-related initiative has been shrunk, and the ad policy adjustment coincides with that.
Following an onslaught of regulatory and congressional scrutiny two years after announcing intentions to create a flurry of new digital coins, Facebook and its partners have been forced to substantially scale back their plans. The company started a test program earlier this year to transfer remittances using a competitor, an existing coin, which was a long cry from its original grand ambition. David Marcus, the project’s inventor, announced his resignation on November 30.
Facebook wasn’t always so invested in cryptocurrency marketing. Because of concerns about “deceptional promotional practices,” the platform banned ICO advertisements in 2018. Officers in London recently took similar action against memecoin “Floki-Inu,” plastering their advertisements all over the metro stations in the neighborhood.
On Monday, the head of Facebook’s development portfolio “NOVI” announced his departure, citing a desire to pursue other opportunities.
With the rule adjustment, Meta claims its policy is now more “fair” and “transparent,” allowing small businesses to benefit from Facebook’s reach.
“Cryptocurrency continues to be an evolving space and we may refine these rules over time as the industry changes,” Meta quoted. “This includes adding qualifying licenses to the list as they become available and after reviewing them.
