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Facebook reverses ban on cryptocurrency ads

Facebook has made an announcement this week that it would modify a long-standing policy that barred most cryptocurrency companies from running ads on its platform. The decision comes after the startup, now known as Meta, attempted and failed to launch a cryptocurrency that could be used to transmit money online to anyone in the world using Facebook tools.

Advertisers could previously submit an application and add information such as any licences they earned, if they were sold on a public stock market, or any other relevant public background on their firm, according to the company. The company is increasing the number of regulatory licences it takes from 3 to 27 in the future.  “We’re doing this because the cryptocurrency ecosystem has continued to grow and stabilise in recent years, with more government regulations creating clearer norms for their industry,” the company added. They stress that they would continue to reject cryptocurrency ads from companies that do not submit one of the accepted 27 regulatory licenses.

A few former Facebook employees interviewed said that the company’s new policy is significant for the crypto business, as it will allow more individual investors than ever before to access cryptocurrency. The new rules will also benefit blockchain start-ups, which is the technology that allows cryptocurrencies to function.

In January 2018, the corporation banned cryptocurrency ads but in May 2019, it eased the restrictions slightly. Start-ups in the bitcoin and blockchain areas were unable to promote their work and reach potential clients on Facebook and Instagram due to the prohibition. Over the last year, Facebook has drastically pulled back its cryptocurrency ambitions. Following the announcement of plans for a currency and a digital wallet in 2019, Facebook was met with a barrage of criticism from lawmakers and authorities throughout the world. Novi, the company’s digital wallet, was ultimately released in October. However, the digital money, now known as Diem and managed by an independent organisation, is still unavailable to the general public.