Social media giant Facebook has updated its advertising policy. Misleading and unethical ads promoting ICOs, cryptocurrencies and binary options are no longer congesting users’ newsfeed. Rob Leathern made the announcement via blog post.
Social media giant Facebook has updated its advertising policy. Misleading and unethical ads promoting ICOs, cryptocurrencies and binary options are no longer congesting users’ newsfeed. Rob Leathern made the announcement via blog post and he states that the policy is aimed at ads that “promote financial products and services that are frequently associated with misleading or deceptive promotional practices”.
There are no authority regulations on initial coin offerings and probably this is why the social media is trying to protect its users from malicious offers. Bad actors often promote unrealistic content that claims huge gains, no-risk activities. Many cryptocurrency and blockchain investors had already raised the flag that some ads are dangerous and can potentially make customers spend gross sums of money.
The new policy targets all sorts of potentially risky ad campaigns not only those related to digital currencies. The new regulations will affect all Facebook platforms including Audience Network and Instagram. The company insists that it will constantly improve the policy by taking into account users’ signals.
You might be asking yourself why Facebook would cut a big part of their revenue stream. Perhaps, the lack of regulatory actions from governments and institutions played a role. Maybe some users had complained about the deceptive nature of certain ICO ads. In both cases, Facebook is not alone. The head of Xapo (bitcoin wallet) Wences Casares warned the public not to put more money in cryptocurrency than they are ready to lose. Furthermore, Ethereum and Ripple founders had also expressed concerned that some people are investing recklessly because certain ads claim that cryptos are risk-free.
Bitconnect is a perfect example. Its advertisements guarantee fixed income and no risk for the investors. As you already know, the cryptocurrency is being under investigation by US authorities who consider it a Ponzi scheme.
At the same time, the executives of CFTC and SEC Christopher Giancarlo and Jay Clayton issued a warning at the crypto community. The cautioned investors who try to avoid the law when persuading others to join the new industry. SEC filed a suit against AriseBank claiming it is engaged in fraudulent activities and as a result, the company’s initial coin offering was put on hold.