San Francisco, CA – Facebook’s new policy reveals that advertisements involving cryptocurrencies, a tool as a source of capital mostly used by startup companies, are now prohibited.
The policy states that “ads must not promote financial product and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.”
Facebook has many users that most likely have stumbled upon ICO advertisements, which includes ads that guarantee bonuses and high investments returns.
With that said, Rob Leathern, Facebook’s product management director, stated that the new policy was created so that those companies that are not operating with good intention will be prevented from advertising binary options, ICOs, and cryptocurrencies. Even those legitimate businesses that operate legally will no longer be able to advertise the same products and services.
With the new Facebook policy, the self-styled “crypto guru” or “crypto-genius,” James Altucher, whom you’ll quickly recognize because of his ads that appear on the internet, wherein, those ads have become a crypto industry meme, will no longer be able to advertise on Facebook.
According to Leathern, this policy will not only be implemented on Facebook but also on other platforms where Facebook sells ads, Instagram and Audience Network. Those who violate this policy will be banned on these platforms.
As Facebook may not be able to catch all those violators of this new policy, Leathern encourages the Facebook community to help by reporting contents that violate the Advertising policy. They can report ads on Facebook by clicking on the upper-right hand corner of the ad.
It was also suggested from the blog post that the policy might change in the future, “we will revisit this policy and how we enforce it as our signals move,” as they work their way in improving at detecting and removing misleading advertisements.
The cryptocurrency boom or bubble costs a lot of money from people who were led by scams and wild price fluctuations.
Some investors and entrepreneurs argue that the policy also punishes companies and businesses that are related to cryptocurrency products legally. Prominent crypto backers, investors Marc Andreessen and Peter Thiel, are also part of Facebook’s board of directors.
Although, Facebook still permits financial topic ads, but with restrictions. One is that it requires targeting only 18 years old and above for this kind of services. Advertisements that include online money gambling, lottery, or such, will also only be allowed with prior written permission.