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Facebook cracks down on Crypto-Scams- bans all Ads on Cryptocurrencies and ICOs

Jan 31, 2018 Posted /  21538 Views

Facebook cracks down on Crypto-Scams- bans all Ads on Cryptocurrencies and ICOs

In what can be called as a big blow to Cryptocurrency and ICO enthusiasts, Facebook has banned all related advertisements, which means that all virtual currencies and tokens will now have to rethink their advertising and Public relations strategy.

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Notably, social media and especially Facebook have remained a primary source of gaining influence amongst common audiences. On Tuesday, one of the biggest social networks announced that it is banning all advertisements related to bitcoin, cryptocurrencies and ICOs primarily because it is endeavouring to crack down on the scams and frauds.

As reported by media the new rule lays down that Facebook attempts to "prohibits financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency."

The social networking giant has described its policy as far-reaching and "intentionally broad" as it wants to encompass all the details and not leave out on any scam or fraud. Facebook views that as ICOs are largely unregulated means of fundraising for the company it embeds a great risk of scams and fraudulent activities.  ICOs basically involve selling investors cryptographic assets, in a similar bent as to an IPO.

However, looking at the mood in the market, cryptocurrencies are basically the buzz of the town and no government and marketplace have so far been successful to avoid it completely. Even last month the co-founder of Facebook Mark Zuckerberg had commented that he wants to experiment in the field of cryptocurrencies and people were speculating how Facebook will do it.

After that statement, this ban comes a major shock to the crypto-enthusiasts. A Facebook spokesperson told the media that the new policy bans all the ads related to cryptocurrencies ranging from ranging from buying and selling of cryptocurrencies to offering of tokens- directly or indirectly.

It is noteworthy that this week, the US Security exchange Commission shunned the operations of one ostensibly fraudulent ICO that has professed to have raised $600 million.  In the world of ICOs, it's not unusual for exchanges to lose hundreds of millions of dollars worth of customer funds in plausible hacks. Facebook says that it has taken this stern step in lieu of these scam companies. The social network has also banned for Bitcoin wallets ads, for example, as are ones for Ethereum-mining hardware.

The news was broke in a blog post announcement where Facebook product management director Rob Leathern recommended Facebook may reconsider opening up the policy at some point in time to let legitimate crypto-related businesses advertise again. However, it is still unknown when that could happen.

"We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception," he wrote. "That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith."

"This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve."

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Cryptocurrency and ICO Ads bans facebook ads ban

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