Facebook Bans All Cryptocurrency Ads on their Platform

Despite the optimism of Mark Zuckerberg earlier this month regarding cryptocurrencies and blockchain, Facebook decided to ban all ads of cryptocurrencies on their platform.

 The move reportedly came to protect users from ads about binary options, ICOs and certain cryptocurrencies that were of dubious nature. Rob Leathern (Product Management Director, Facebook Business) said that while Facebook was always committed to allowing users to discover new products and services, they want users to explore ads without the fear of any deception or scams.

Initial Coin Offering or ICO is a recent trend that encourages people to purchase a new coin before it is formally launched. At the time ICOs are made available, the cryptocurrency mostly have only their white paper ready. While ICOs have been a success story for many cryptocurrencies, they are also looked at with great suspicion.

 The main reason is that ICOs are not regulated the same way normal investment assets are. There have been many cases where a company disappeared after raising money through ICOs, leaving the investors in losses. Due to lack of regulations and the fact that ICOs are nothing but a vague promise that “the coin might become more valuable in the future”, there is no way to recover these losses.

Many other cases have come to light in recent time. A particular cryptocurrency endorsed by boxer Floyd Mayweather was later found to be deceiving the investors. USSEC seized assets worth $600m from a firm that was raised by ICO this week. Raising money through ICO has already been banned in South Korea and China, two of the biggest markets of cryptocurrency.

The new regulation by Facebook aims to curb the deception around new cryptocurrencies, though there is scope for changes when required. Keyphrases like prompt to buy ICOs are targeted and the associated ads are banned. However, Facebook has admitted that it is not possible for them to ban all such ads, which is why it had requested the users to report any such ads whenever they see them.

Facebook had been under controversy for creating propaganda around the US Election in 2016. Thus, it seems reasonable that it would distance itself from promoting anything that might be remotely dubious.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top