Why Facebook’s Crypto Ad Ban is Actually a Good Sign

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Yesterday, Facebook announced that it was banning all advertisement related to cryptocurrencies and ICOs, writing: “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception […] there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”

This ban was widely reported as bad news, but a lot of the reporting has missed a key point: this is a temporary measure.

Facebook isn’t banning crypto ads forever. Instead, it’s banning crypto ads while the company tweaks its fraud detection system to better root out crypto scams. In the long run, it’s likely to walk back the policy, which it says is “intentionally broad,” but it wants to be sure it can separate the scams from the non-scams first.

That’s a bummer for marketers of legitimate cryptocurrencies hoping to make waves on FB in the short-term, especially given that Facebook’s recent news feed changes have made getting promotional content in front of Facebook audiences organically very difficult.

But in the long run, this is good news for the cryptocurrency community. High-profile scams like Bitconnect damage the reputation of the entire blockchain industry when they fall apart, and if those kinds of “projects” are allowed to advertise freely on Facebook – your grandma’s social network of choice – they’re going to attract more victims, making their eventual collapse all the more damaging to public perceptions of the crypto space.

The US Commodity Futures Trading Commission subpoenaed popular exchange Bitfinex over its USD-pegged currency Tether.

To be frank, the crypto space doesn’t need more reputation damage. Just in the past week or so, we’ve seen top crypto exchange Bitfinex supoenaed, high-profile dismissals of crypto and Bitcoin from famous economic and political figures at Davos, and talks of tightening regulations in Korea after customs officials found $600 million in illegal foreign crypto exchange trades. Crypto bears are both loud and numerous. Anything that might cut down on the mainstream reach of scams and frauds that give crypto a bad name is a good thing.

As long as it’s only temporary – and Facebook suggests it will be – Facebook’s ban is good news for blockchain enthusiasts.

FB is trying to make its advertisements more reliable and trustworthy for users. If it accomplishes that, it will make FB ads more valuable to legitimate crypto marketers once the ban is lifted. Users will be more likely to click on ads they believe they can trust, after all, and there should be fewer high-profile scams gaining widespread traction and scaring off new users if scammers are denied access to the world’s biggest social media platform.