CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Facebook (FB) parent Meta allows more crypto advertising

By David Burrows

08:16, 2 December 2021

Facebook logo on a mobile phone with Meta logo in the background – Photo: Alamy
Photo: Alamy

Social media giant Meta (formerly Facebook) is making it easier to run advertisements about cryptocurrency on its platform by expanding the number of regulatory licenses it accepts.

The company said it was doing this because the “cryptocurrency landscape has continued to mature and stabilise in recent years and has seen more government regulations that are setting clearer rules for their industry”.

Facebook revised its eligibility criteria by increasing the number of regulatory licenses it accepts from 3 to 27.

Previously, advertisers on Facebook could submit an application and include information on any licenses they may hold, whether they are publicly traded and other relevant backgrounds on their businesses. From now on, Facebook will no longer use a ‘variety of signals to confirm eligibility’ but instead require only one of these 27 licenses.

‘For greater transparency’

‘This change will help make our policy more equitable and transparent and allow for a greater number of advertisers, including small businesses, to use our tools and grow their business,’ Facebook said in a statement on Wednesday.

COIN

297.05 Price
-7.360% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 1.09

NVDA

145.91 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 0.12

MSTR

397.49 Price
-16.300% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 1.09

SMCI

29.76 Price
+15.160% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 0.13

Advertisers who were previously approved will not be impacted by this change. Facebook acknowledged that cryptocurrency continued to be an evolving space and it may refine these rules over time as the industry changes. “This includes adding eligible licenses to the list as they become available and after we have reviewed them,” the company said.

The promotion of cryptocurrency on platforms with huge audiences has long been a contentious issue. Back in 2018, Facebook banned all cryptocurrency advertisements as too did Google.

Whether there is a better understanding of cryptocurrencies now in 2021 (than in 2018) and whether investors know the risks (as well as the rewards) is yet to be seen; but certainly those advertising on Facebook will have much greater visibility.

Market watchers will be interested to see how the Facebook (Meta) stock price moves following market opening later today.  

Read more: Gold or bitcoin? What’s the best buffer against inflation?

Markets in this article

META
Meta Platforms Inc (Extended Hours)
562.60 USD
-6.4 -1.130%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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