With the rise of cryptocurrencies, and in keeping with the broader Web 3.0 drive, Meta has announced an amendment to its cryptocurrency ad policies, which will allow more crypto marketers to advertise on its platforms. Meta is raising the number of regulatory licenses they accept from three to 27 starting today, making it easier to run ads about cryptocurrencies on our platform. On their policy page, they're also making the list of qualified licenses public.
To put it another way, any cryptocurrency that wants to run advertising in Meta's apps must comply with regional licensing requirements, which vary by country. With cryptocurrency becoming more widely acknowledged, Meta is now aiming to allow more crypto companies to post advertising on its platform, which will create additional opportunities for well-known crypto companies to sell their products while also allowing Meta to profit from crypto ads.
Advertisers used to be able to submit an application that included information like any licenses they had if they were traded on a public stock market, and other publicly available information about their firm. However, as the cryptocurrency ecosystem has evolved and stabilized, as well as increased government regulation, the industry's responsibilities and expectations have become more obvious. We will no longer use a variety of signals to check eligibility, instead of needing one of these 27 licenses in the future.
Is that a wise decision? As Meta points out, the crypto sector is developing, and cryptocurrencies are now widely accepted as a valid method of payment. However, most local financial regulators oppose them, resulting in a reduction in transaction protection and monitoring, as well as a level of risk in the process. However, all crypto providers are obligated to fully identify any such risks, and most do so while highlighting the space's continued market volatility. Because of the increased level of total openness, most people who invest in cryptocurrency are at least aware of these features, which reduces the risk factor in such campaigns within Meta's apps.
As crypto adoption grows, more of these risks will become apparent, and while much of the crypto community is built on trust and a sense of community around creating something new, there are concerns about how much of that can be sustained at scale, and what that means for scams and criminal activity, especially as more vulnerable investors are brought into the mix.
Expanded promotional capability through Meta's applications will undoubtedly contribute to increased exposure in this regard, while the relative risk factors will be mitigated by increased regulatory scrutiny outside of the company.