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Meta announced its new decision following the news of the departure of David Marcus.
Formerly known as Facebook, Meta Platforms Inc (NASDAQ: FB) has announced its decision to reverse its policy that prevents crypto ads on its platforms. Meta has a long-standing policy that restricts crypto companies from running ads on their services. According to the Wednesday announcement, Meta specified that it is “expanding eligibility to run ads about cryptocurrency” on Facebook and Instagram. That means that subsequently, a lot of crypto companies will be able to market their product offerings. In the long run, the decision will help expose digital asset product offerings to more people.
Meta Lift Long-Standing Crypto Ads Ban
Meta announced its new decision following the news of the departure of David Marcus. Before revealing his departure in a Twitter thread, Marcus was a Facebook crypto executive. The company made a move to launch a cryptocurrency but, unfortunately, was not successful.
In the recent announcement that Meta is enabling crypto ads, the company stated the requirements for advertisers. Advertisers are to submit an application and include any licenses related to their business. Meta explained that it is making crypto ads easier on its platform by increasing the acceptable regulatory licenses. Formerly, Facebook used to recognize three regulatory licenses. However, effective from the time of the announcement, Meta will now be accepting 27 regulatory licenses from advertisers. All advertisers need to do is to have any of the eligible 27 regulatory licenses and submit them to Meta. Stating the reason for the change, Meta noted in the announcement:
“We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has more government regulations that are setting clearer rules for their industry.”
Furthermore, Meta wrote that the new development will help its policy to be “more equitable and transparent.” Also, more advertisers, including growing businesses, will be able to use the company’s tools to expand their business.
Before the name change to Meta, Facebook banned crypto ads in January 2018. The ban has prevented a lot of startups in the crypto and blockchain sector from promising their products. Also, these startups have been unable to reach potential customers on Facebook and Instagram.
Meta May Include Additional Eligible Regulatory Licenses
With the increasing adoption and popularity of digital assets, Meta said it may review its decision “as the industry changes.” This means that the company will consider including more eligible licenses.
A former employee on Facebook’s small business team, Henry Love, is confident that many will benefit from the new policy. Love said more investors would begin to have easy access to cryptocurrencies than before.
“With more openness and transparency for what crypto companies can do, we will see more adoption for the cryptocurrency industry and the metaverse than ever before. This is a game changer for mass adoption.”
Facebook stock is currently trading up 0.77% to $313 in extended trading hours. The company’s stock has gained 10.20% over the past year and has increased 13.71% in its year-to-date record.