Benzinga | Dec 2, 2021 02:49AM EST

Facebook Eases Ban On Cryptocurrency Advertisements Amid Metaverse Push

Facebook Inc. (NASDAQ:FB) has eased a ban on advertisements promoting Bitcoin (CRYPTO: BTC) and other cryptocurrencies on its platform.

What Happened: Facebook, which recently rebranded as Meta Platforms Inc. to highlights its vision of betting big on the metaverse, said it is expanding the number of regulatory licenses it accepts to 27 from three.

This will make it easier for companies to run ads about cryptocurrencies on its platform.

Facebook cited the maturing cryptocurrency landscape as well as government regulations that are setting clearer rules for the industry as the reasons behind its move.

Previously, advertisers were required to submit an application and include information including any licenses they obtained for running cryptocurrency advertisements on Facebook.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Facebook first banned cryptocurrency ads in January 2018 amid a spate of initial coin offerings that ended up as scams, but eased the ban slightly in 2019.

Facebook's ad rule change comes just a day after David Marcus, the co-creator of the company's digital currency project Diem, said he is leaving the company at the end of December.

In June 2019, the Mark Zuckerberg-led company announced plans to launch its own digital currency called Libra within the next year, but the project faced stiff opposition from regulators around the world. The digital currency has been renamed Diem, but has not been released to the public.

Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google said in August it has resumed allowing advertisements related to cryptocurrencies on its network but the move has come with plenty of restrictions.

Price Action Facebook shares closed almost 4.3% lower in the regular trading session at $310.60, but rose almost 0.8% in the after-hours session to $313.00.

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