Facebook is Banning all Advertisements For Cryptocurrencies
Cryptocurrency is becoming hugely important as the price of BitCoin continues to increase. In respect to this, a lot of new coins are coming out and starting ICO’s (initial coin offerings) in order to raise funds and attract a lot of investors to their coins.
This has lead to an increased number of cryptocurrency scams. Millions of dollars have been lost all in the name of cryptocurrency. The problem is some the new cryptocurrencies are fake but look genuine at the start. Some of the them even advertise their cryptocurrency ICO on Facebook.
In an effort to combat cryptocurrency fraud, Facebook has revealed it is banning all ads related to Cryptocurrencies.
The social media giant said it is barring ads for “financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.”
This week, the US Securities and Exchange Commission shut down an initial coin offering by a Texas company called AriseBank.
AriseBank, a new cryptocurrency rearing its head up was accused of relying on celebrity endorsers such as boxer Evander Holyfield and social media to cheat investors out of $600 million of its goal of $1 billion for a currency it called “AriseCoin.”
However, Facebook product management director Rob Leathern indicated that Facebook may modify the new policy at some point to allow genuine crypto-related businesses to advertise again.
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” Leathern wrote. “That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”
“This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve,” he added.