Facebook Inc has decided to allow ads promoting cryptocurrency, from pre-approved advertisers on its platform.

Contrarily, it will be prohibiting ads tied to binary options and initial coin offerings.

Prior to the adjustment, the company had banned ads that promoted financial products and services frequently associated with misleading promotional practices.

However, Facebook indicated that, companies would need to be pre-approved and offer proof of licenses in order to place ads on its platform for cryptocurrencies.

“Given these restrictions, not everyone who wants to advertise will be able to do so,” Facebook’s product director, Rob Leathern, said in a blog.

“We will listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time,” he added.

Similarly, coin offerings, which are used by some startups to raise billions of dollars, still won’t be able to advertise on Facebook.

Twitter, Google and Snapchat have also announced similar bans.

Facebook and other online platforms began cracking down on ads for crypto-related businesses amid concerns over fraud in the rapidly growing and largely unregulated sector where currencies can see huge swings.

Earlier this year, the British government called for global regulation of controversial virtual currencies like bitcoin.

By:Clara Doku/techvoiceafrica.com