On Tuesday, in one of its blog posts, Facebook outlined its new policy that prohibits ads that promote financial services or products that are associated frequently with deceptive or misleading promotional practices.
This said the post, included promotional adverts for cryptocurrencies like bitcoin, and the Initial Coin Offerings that give people an opportunity to purchase into a new cryptocurrency.
This new advertising policy has been designed as a way to prevent scammers from taking advantage of Facebook users. The social media giant highlighted once possible instance using an ad that would be banned such as “Use you funds for retirement to purchase bitcoin.”
As the public interest in cryptocurrencies including bitcoin has surged to extreme levels, Facebook users might have seen an increase in the number of ads for making investing in the digital currencies. Late in 2017, the popularity of bitcoin and its value skyrocketed. During December, the value of one bitcoin reached $17,000. Since that time it has dropped to a current value of $10,000.
A recent investigation by an online website found that scammers have been spreading fake news about the different cryptocurrencies across social media to increase prices of the specific currencies.
Rob Leathern the product management director of Facebook said that the social media giant wants people to discover and learn of new products as well as services through ads on Facebook, but without fear of deception and scams.
With that being said, there are several companies advertising binary options, cryptocurrencies and ICOs that currently are not operating in good faith.
A Facebook spokesperson said that the enforcement of ad policies will be through both manual as well as automated reviews, and that ads leading the reader to websites where its main business model included ICOs, binary options and cryptocurrencies will not be allowed.
Users of Facebook will also be able to report any such ads that they believe are a violation of the new policy.
The U.S. Securities and Exchange Commission has advised investors since last year they need to be wary of scams involving ICO, and the federal agency has cracked down on fraudulent schemes involving cryptocurrencies. Fake mobile apps have been created by scammers to steal different digital currencies.
Several cryptocurrencies and the offering for the same are not scams, however, Facebook indicated that the new policy for advertising was intentionally broad, but the company will be revisiting it at some point in the future.