In a reversal to a long-running trend, Facebook has become the first social media platform to roll back on a much-emulated cryptocurrency advertising ban. This is a brief point of good news in a tough week for cryptocurrencies, which saw the price of bitcoin drop to its lowest level in 2018. The reversal comes six months after the platform introduced a blanket ban on all ads related to cryptocurrencies. It will not be a free-for-all, however, as adverts promoting initial coin offerings (ICOs) will still not be approved. Facebook’s initial policy was intentionally broad, as admitted by the company itself, and it was only to play for time while it came up with a more nuanced approach to cryptos. The ban was put in place because of fears that some companies were using the platform to promote services and ICOs in a malicious and underhand way. Firms hoping to use this opportunity to broaden their market may be in for a hard time, though, as there are still stringent rules placed on what kinds of products may be promoted. Applications must include:
“any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business.”
Facebook was among the first big internet company to stop allowing crypto ads on its website. Twitter, Google, and LinkedIn introduced either tougher rules or outright bans as well during 2018. This latest move from Facebook does indicate that some of these restrictions may be eased in the near future. The space around cryptos has come under a lot of scrutiny this year, and it appears that regulation may allow for the market to grow, as more and more investors become more confident that they are not buying into a scam.
As part of this increased acceptance of digital currencies, Malta, one of the countries with the friendliest attitude toward the new technology, has passed several pieces of legislation which will position the country as one of the best places for blockchain companies to set up in. Three pieces of law were passed by the Maltese parliament which provides a greater structure for such firms to operate in. The first covers regulation of the space, including distributed ledger technology, while the second covers ICOs and virtual financial assets. The third sets up a new Digital Innovation Authority which is empowered to promote blockchain industries on the island nation, as well as to create an environment which will allow for those industries to develop. The DIA also has some regulatory powers.
Bitcoin (BTC), and all major digital currencies, suffered this week. From a initial price of $6,6765, the coin took a major step back to fall to its lowest price of 2018. The bottom was on Sunday afternoon, when bitcoin hit $5,826. It did increase in value since then, but only barely managed to close above $6,000, at $6,156.
Ether (ETH) opened at $534, and also experienced a sharp drop to $426, but its recovery was not nearly as robust as bitcoin’s was, and finished at $439.
Ripple (XRP) did not escape this massive hit to the price of digital currencies, though its fall was not as dramatic as the two largest coins. From $0.53 it hit a low of $0.45, ending the week at $0.46.
More on Crypto Briefing
Crypto Briefing: Bitcoin Futures, Scams and ICOs
The Week of the Altcoins This graph show how prices have changed since the midnight December 7th with prices at that point...
Crypto Briefing: Bitcoin Futures, Tether and the SEC
Here’s what happened in the cryptosphere this week 1. Bitcoin Futures Get Regulatory Approval The Story The Commodity Futures Trading Commission (CFTC) has...