Facebook is now banning all advertisements that promote cryptocurrencies including the ‘hot at the moment – Bitcoin’. The move by the company is an effort to prevent people from advertising financial products and services that could mislead people or that can be deceptive in its promotions.
Even legal companies cannot promote cryptocurrencies like bitcoin or other cryptocurrencies, Initial Coin offerings (ICO) or binary options according to Facebook’s announcement. The announcement comes in the wake of several countries cracking down on cryptocurrencies.
Advertisements that violate the new policy will not appear on Facebook, and will also not be available on other platforms related to Facebook including Instagram and its advertisement network.
“This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, we will revisit this policy and how we enforce it as our signals improve.” Rob Leathern, one of Facebook’s ad tech directors wrote in a blogpost.
A cryptocurrency is a digital or virtual currency that uses cryptography for security. It is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
However, the anonymous nature of cryptocurrency transactions makes them well-suited for a host of nefarious activities, such as money laundering and tax evasion.
Cryptocurrencies saw a boom across the world and even led to some scams where investors who did not fully understand the world of cryptocurrencies were duped. However many entrepreneurs and investors have said this move is unfair to legitimate companies and products in the crypto sector.
Scams advertised on Facebook may have led to some gullible investors pouring in their money and then losing it, but banning all advertisements related to cryptocurrency might be punishing businesses that are using blockchain tech and crypto for good purposes, some experts said.