Facebook no longer wants to show ads for virtual currencies, such as the bitcoin. Advertisements for so-called initial coin offerings, in which companies issue their own currency (token) in exchange for an investment, are also out of the question.
Such advertisements are “often associated with deception and deceit,” according to Facebook. Some issues turned out to be scams, the unknown people behind them quickly cashed the money and then left with the northern sun.
Also binary options are no longer allowed. People can bet on the course of, for example, the bitcoin. Whoever is right gets a reward. But whoever is wrong has lost the entire deposit. So it is all or nothing. “We want people to discover new products and services without being afraid of scammers,” Facebook explains.
The new rule also applies to Facebook subsidiary Instagram.
Facebook thinks that advertisements for cryptocurrency, binary options and ICOs do not belong on the platform, and prohibits companies from advertising them.
The social platform wants to protect users from misleading ads, and has therefore added a ban on specific ads to the advertising policy. According to Facebook, financial products such as cryptocurrency, binary options and initial coin offerings (ICOs) are often associated with misleading and risky practices. As an example, Facebook mentions advertisements with texts like ‘New ICO! Buy tokens at a 15% discount NOW! ‘ and ‘Use your retirement funds to buy Bitcoin!’
Facebook and Instagram
Companies that offer these kinds of products often do not do so in good faith, according to the platform. The new policy is initially set up broadly. If Facebook gets better at recognizing malicious advertising, the policy will be revised according to the company. The new policy will apply to Facebook, Instagram and the Audience Network that shows advertisements on external sites.