Facebook is banning ads on its social network that promote cryptocurrencies, initial coin offerings and binary options following a crack down on misleading and deceptive promotional practices.
In a blog post by Facebooks’ Rob Leathern, the social media giant is trumpeting a new policy, banning ads that appear to be misleading or deceptive promotional practices.
“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency,” Facebook’s product management director, Rob Leathern, said.
There have been a significant number of instances where companies have raised money through an Initial Coin Offering (ICO), with no apparent business behind it. Regulators have recently started to crack down, now Facebook is following.
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” Facebook said.
Mark Zuckerberg, the Chief Executive Officer of Facebook referred to cryptocurrencies and other technologies that decentralize power as a trend he was studying in 2018, part of an effort to correct problems on the social network. While some enthusiasts took this as a positive sign for digital currencies, Zuckerberg wrote at the time that he was looking at both the positive and negative aspects of the technology.