Facebook is banning any advertising that sells cryptocurrency products and services
The company’s business managing director implied Facebook believes this broad approach is necessary as many companies advertising cryptocurrencies and initial make up offerings (ICO) are not currently operating in “good faith”.
Rob Leathern, Product Bosses Director for Facebook Business, said: “We want people to continue to stumble upon and learn about new products and services through Facebook ads without consternation of scams or deception.
“There are many companies who are advertising binary alternatives, ICOs and cryptocurrencies that are not currently operating in good faith.”
An ICO promotes people to invest into fledgling cryptocurrencies before they opening, with the hope that in the future the cryptocurrency will increase in value as the crypto money becomes more popular.
1 of 11
We want people to continue to discover and learn about new products and servicings through Facebook ads without fear of scams or deception
Without the regulatory burden of bring up money through traditional investment, many organisations have hardened ICOs to generate large sums of money and then disappear up the investor at a loss.
This week ICO Prodeum saw all its data removed from its website as investors realised they had been scammed.
South Korea and China cause taken the action of banning using an ICO to raise money and many regulators in other mountains warn against using them.
Facebook has said “misleading or phony ads have no place” on its website.
Bitcoin’s price has fallen lower $10,000 on the day of Facebook’s announcement
The company announced that under its new strategy the following advertisements are now banned:
- ‘Use your retirement funds to buy Bitcoin’
- ‘New ICO! Buy marks at a 15% discount NOW!’
- ‘Click here to learn more about our no-risk cryptocurrency that enables twinkling of an eye payments to anyone in the world.’
- ‘Start binary options trading now and sustain a 10-risk free trade bonus!’
Facebook’s decision has had a dramatic in truth on Bitcoin’s price as it fell below $10,000 on the day of its announcement.
The social way giant realises that their new policy may not catch every bill and are encouraging the Facebook community to report content that breaches its advertising procedures.
While the company states it is introducing this new policy to “improve the completeness and security of ads” it comes at a time when Facebook is under pressure for brooking Russian propaganda during the EU referendum and US election.