Understanding Cryptocurrency Advertising Laws on Social Media

Digital marketing and cryptocurrencies are among the hottest topics today. On the one hand, digital marketing has revolutionized how marketing is done, while on the other, cryptocurrencies have gained increased popularity from both top investors (think about Elon Musk) to top financial advisors.

Like other businesses, cryptocurrency and blockchain companies aim to promote their efforts on various digital platforms, including social media platforms. However, to advertise crypto on these platforms, you need to understand the cryptocurrency ad policy that governs each platform. Luckily, you have come to this post. Here we look at everything you need to know about cryptocurrency advertising on Facebook, Instagram, and Twitter.

Why Cryptocurrency?

The global cryptocurrency market is valued at more than $2 trillion. The US cryptocurrency market alone is expected to reach over 2.2 billion by 2026. Additionally, the World Economic Forum estimates show that about 10% of global GDP will be stored on blockchain technology by 2027.

Even with these stats, only a few Americans have ever invested in cryptocurrencies like Bitcoin. According to a 2021 survey by Pew Research Center, about 86% of Americans say they know a little bit about cryptocurrencies. 24% say they know much about cryptocurrencies, and only 16% claim to have invested, traded, or used a cryptocurrency.

These statistics present an excellent opportunity for entrepreneurs in the crypto industry. Many are creating social media groups and YouTube channels to educate people about cryptocurrencies.

Facebook cryptocurrency advertising policy

As the cryptocurrency landscape continues to gain traction, we now have more explicit rules regarding the industry.

Facebook announced on December 1 2021 that it is relaxing its cryptocurrency advertising policies. Facebook or Meta (as it is now called) updated its eligibility for running cryptocurrency ads on its platform. More specifically, Facebook expanded the number of regulatory licenses it accepts to 27, up from three.

To run cryptocurrency ads on Facebook, you will need to show that you have one of these licenses. These new changes from Facebook will help boost transparency and allow many advertisers to use Facebook tools to grow their business.

Will you require any approval to run cryptocurrency ads on Facebook?

According to Facebook, you will not require approval to run ads for crypto wallets and new wallets. However, you will need prior permission to advertise crypto exchanges that help users buy and sell cryptocurrencies.

In the past, cryptocurrency advertisers were required to submit an application to run ads. This included information such as any licenses they had, whether they traded on the public stock exchange, and other information regarding their business.

With the new update, crypto wallets and exchanges can advertise on Facebook if they possess at least one of the potential 27 regulatory licenses, including those issued by regulators in Australia, Canada, Austria, Germany, U.S., Malaysia, Norway, Philippines, South Korea, Netherlands, Sweden, United Arabs Emirates, Japan, Indonesia, Singapore, Thailand, Luxemburg, France, Estonia, Finland, Hong Kong, and the UK.

The best part is that advertisers previously approved to promote on Facebook will not be affected by these changes.

These crypto advertisers will need prior permission to advertise on Facebook

You need written permission to promote cryptocurrency features that facilitate monetization, reselling, or staking cryptocurrencies. These include:

1. Trading platforms and cryptocurrency exchanges, including margin trading, spot trading, futures trading, and other trading platforms that involve cryptocurrency assets
2. Cryptocurrency mining hardware and software
3. Cryptocurrency wallets that facilitate crypto buying, selling, or staking
4. Platforms that facilitate cryptocurrency lending and borrowing

If your ad is rejected, you can apply to the Facebook cryptocurrency form to check whether your account is eligible for running ads. Once your application is approved, you can now advertise your ads while ensuring they comply with Facebook’s Advertising Guidelines.

Crypto advertising on Instagram

With more than 2 billion active users, the Facebook-owned social media network is a great advertisement platform. According to Statista, Instagram had a staggering revenue of more than US$17.4 billion in ad revenue in 2020, with the revenue expected to reach US$ 40 billion in 2023.

So, can you run crypto ads on Instagram?

Being a sister platform to Facebook, Instagram adopts a similar policy regarding cryptocurrency advertising. As such, Meta’s new cryptocurrency advertising guidelines in December 2021 still apply on Instagram.

Like other social media platforms, Instagram has stringent measures regarding cryptocurrency investment advertisements. That means you may be required to seek permission before running advertising news about cryptocurrencies and other financial investments.

Despite their growing popularity, cryptocurrencies are not yet part of the mainstream. Besides, when we talk about cryptocurrencies, we are not just referring to Bitcoin, Ethereum, or Ripple. We are also referring to many less-known cryptocurrencies not worth investing in. That explains why Instagram regulates crypto advertising on its platform.

In June 2021, Kim Kardashian got in trouble after promoting crypto on Instagram. The celebrity influencer shared the Ethereum Max project with her more than 250 million Instagram followers.

The problem was not that she posted about crypto on Instagram but that the so-called Ethereum Max was a speculative digital token created a month ago by unknown developers. While this doesn’t mean that it is a scam, social media platforms want to ensure that influencers and other advertisers are not paid to promote tokens that do not exist.

Advertising cryptocurrency on Twitter

Twitter is another excellent social media network with more than 300 million monthly active users. According to its policy guidelines, Twitter prohibits any form of financial speculation to promote or attract interest in stocks and shares. However, you can promote cryptocurrency products or services after getting prior authorization from Twitter.

That said, here are Twitter features you can use to market cryptocurrency:

#1 Optimize your Twitter bio

Your Twitter bio provides an excellent opportunity to showcase your sector of specialization. It must be short, concise, and to the point alongside relevant hashtags.

#2 Crypto giveaways as marketing campaigns

It is not uncommon to see giveaways across Twitter nowadays. While this is a costly affair, giveaways are an effective way to increase crypto awareness and engagement.

This technique is well applied by Crypto Exchange, Kucoin, who compensate fans for reaching out to Elon Musk, a die-hard dogecoin fan.

#3 Crypto Twitter Engagement

Consistently posting more about your project is an excellent way to increase engagement. However, don’t just post content related to your project, tweet about unrelated posts, and comment on other updates within the crypto community to boost engagement.

#4 Pinned Tweets

Pinned tweets help highlight a specific tweet to promote it better. As a crypto enthusiast, this provides the opportunity to share the latest updates about your project.

Going Forward

You cannot underestimate the role of social media marketing for cryptocurrencies. However, the best way to promote your cryptocurrency business is by growing your following and posting engaging content on these platforms. Need help creating engaging and educational content to post on your social media platforms? Contact Contentworks for a customized content plan.