Facebook has announced that it will block all advertisements for cryptocurrency.
The new policy states that: “Ads must not promote products that are frequently associated with misleading or deceptive promotional practices”.
These include “binary options”, “initial coin offerings”, and “cryptocurrency”.
To accompany the update, Facebook has provided examples of promotional material that may now be banned:
- “Start binary options trading now and receive a 10-risk free trades bonus!”
- “Click here to learn more about our no-risk cryptocurrency that enables instant payments to anyone in the world.”
- “New ICO! Buy tokens at a 15% discount NOW!”
- “Use your retirement funds to buy Bitcoin!”
It claims that many companies selling cryptocurrency are not currently operating “in good faith”.
Its concern is ICO scams, whereby currency vendors sell large amounts of virtual coin to early stage ‘investors’, advertising the fact that the value of the tokens may appreciate in the future.
Vendors are then able to disappear post-sale, putting no further effort into advertising or promoting their currency and allowing its value to collapse.
Internationally, there have been moves to ban cryptocurrency ICOs. China and South Korea have already taken action, and many other governments are debating a clampdown on the practice.
The American Securities and Exchange Commission (SEC) said this week that it had seized the assets of a company after it raised $600m in its ICO.
Facebook has claimed that its policy is intentionally broad, and that it will evolve over time.
Read more here.