Facebook has announced a ban on all ads promoting cryptocurrencies including bitcoins and ICOs. It is said to be an 'intentionally broad' policy which aims to stop scammers. This effort prevents people from advertising 'financial products and services frequently associated with misleading or deceptive promotional practices.'
This implies that no advertiser even those who operate legal, legitimate businesses would not be able to promote cryptocurrencies on their platforms. Advertisements that stands accused of violating the company's new policy would be banned on Facebook's core ad, including Instagram and its ad network. The company is open to emerging technologies, but many of the companies were not acting in 'good faith'. "We want people to continue learning about new products through our platform without any fear of scams or deception," said Rob Leathern, product management director for Facebook Business.
Facebook and Google have recently been caught getting paid for adverts to fraudulent sites. It was discovered last week that Google's DoubleClick ad platform was promoting mining malware via YouTube.
The social media giant has not taken any action against the con artists who use their platform to ply their wares and deceive others. The move is being called a positive one for the cryptocurrency market as Facebook has remained a hotbed of plagiarism and scams that have run for months and has led to many losing their cash. Cryptocurrency startup advisor, Kyle Forkey said in an interview, "It would be beneficial to the average investor and crypto too. The more we discourage these scammers, better the ecosystem would get, so I'm all for it."
He also said that legal business companies would remain unaffected by the ad ban. "A majority of the money raised by legitimate ICOs is through partnerships and relationships," he added.
Anonymous Facebook members go on posting blatant scams, only when a company takes punitive action against them will the platform be a safer place to discuss the industry and investments. This is probably the first step towards this direction.