Facebook has recently banned all adverts for cryptocurrencies because they do not follow the Facebook advertising policies and are frequently involved in deceptive and misleading advertising practices—Facebook claims.
Facebook has also updated the advertising policies in Tuesday, adding a list of “Prohibited Content” on its platform. “We will continue to let people learn and discover about new products and services using our platform’s advertising without any fear of scam or deception.” Said Rob Leathern, director product management at Facebook.
There are many companies that are advertising initial coins offerings and cryptocurrencies on Facebook, these companies are currently not operating in a good faith.
There was many misleading and deceptive call to action phrases that were found on Facebook including; “Use retirement funds to buy Bitcoin”, “Click here to learn more about our zero-risk cryptocurrency which allows instant payments to anyone, anywhere in the world”.
According to Rob, Facebook has broader intentions for its advertising policy, Facebook is working on better detection of deceptive ads, false information, and deceptive advertising practices. Facebook will revisit its policy to make sure nothing is done wrong to advertisers as well. Until then the new policy applies to all advertising including Instagram and external websites of Facebook audience network.
As scams are increasing in cryptocurrency space, regulators have begun to watch it carefully, Gizmodo reported that a company apparently raising funds to launch a cryptocurrency for labeling fruits & vegetables was surprisingly disappeared in one night and replaced their entire online presence with the word “Penis”.
However, it only raised $11 at that time. Last month, the financial authorities have announced that they will monitor cryptocurrency offerings more closely in the United Kingdom, similar developments were seen in the United States in January. Jay Clayton, Chairman US Securities, and Exchange Commission said in a statement, “I have directed the SEC to be on high-alert for Initial Coin Offerings that may contradict the spirit of securities laws, and professional obligations”.
While having an interview with the inverse, Kyle Forkey, Advisor to the Moria Token and Founder of Ethmint Consulting said, “The move by Facebook will ultimately be beneficial to the average investor, and indirectly beneficial to crypto as a whole. The more we flush out these scammers, the better the ecosystem is going to handle it, so I’m all for it.”
He also said, “A majority of the money raised by legitimate ICOs is through partnerships and relationships. For my offering, for example, we had raised almost 95 percent of our funds by going out and talking to people and very little through direct advertising like Facebook. I think the only companies that are going to take a hit from losing Facebook advertising are going to be the people not actually putting themselves out there.”