In what appears to be a new move from Facebook, the company is all set to ban ads promoting cryptocurrency products and services. The ban is comprehensive and includes all its platforms, such as Instagram, Messenger and Audience Network.
From now on, organizations and companies offering ICO or Initial Coin Offerings like Bitcoin and binary options trading won’t have a chance to run any of their ads. This new policy aims to restrict ads that represent financial products and services, which are often labeled misleading and deceptive.
Rob Leathern, Product Management Director at Facebook, said: “We want people to continue to discover and learn about new products and services through Facebook ads, without having to fear about scams and deceptions.” He also said that there are many companies who are not promoting binary options, ICO and cryptocurrencies in good faith.
This new move from Facebook is likely to come up, anytime soon.
However, there is also a chance of the policy being changed and in the near future. It all comes down to one single agenda- how the policy is enforced and this will be known only after the signals improve.
What this ban implies?
In a way, anyone who is found to be violating this policy will be banned on Facebook’s core app, as well as its other platforms.
Of late, the cryptocurrency bubble has caused many scams and wild price fluctuations – resulting in widespread loss of money for investors, who join the bandwagon, looking for big money at a short notice.
At the same time, this move also affects legitimate cryptocurrency companies and related crypto products. Yes, scams are illegal and must be prohibited. However, speculating or gambling on investments does not in any manner fall into the same category.
Bitcoins, in particular, have been in circulations for the past 10 years. It is natural that this move will have a negative impact. With most of the traders preferring cryptocurrencies for its flexibility, this ban appears to be a death knell for most of the start-ups.
But some experts are of the view of that this ban will do a lot of good. At least, the potential scammers and stabilize the crypto-economy, as a whole. More or less, it will give the investors, some much-needed clarity and decrease the craze, which compels people to invest, without having any proper knowledge.
Why is Facebook enforcing the ban?
There has been a considerable rise in the use of Facebook ads, whereby roping in celebrities, companies tried to create buzz around a new scheme. The whole operation was simple and effective.
What Facebook is trying to do is to stop the misleading and deceptive ads and there is nothing wrong with it. It is also urging users to report about any ads, which the company’s existing security mechanism might have missed.
The company also said that it was not going after all the ads or promotions, related to crypto-currency.
Using the Facebook platform, most of the companies are using ICO’s as a way to raise a great amount of money, without having to go through the regulatory burden. Once the cash is raised, they just vanish into thin air, leaving the investors in a complete loss.
Guidelines from Facebook
The guidelines from Facebook specifically clarifies of ad-words that are ban worthy includes key phrases like – Use your retirement funds to buy Bitcoins or anything similar. It will allow ads to appear, but with some restriction.
As for the ads that are allowed, the advertisers are asked to target those who are above 18 years of age. With this bold move, it is likely that Facebook will see its revenue falling down from ads. But, at least, it gives the social network a rare opportunity to regain its overall credibility.
Last but not the least, until and unless Facebook finds a way to regulate these services, the legitimate crypto-currency services have a high probability of getting hit.
The Bottom Line
With the ban on crypto-currency ads, Facebook is trying to make a bold statement. It is a good move, considering the craze among the people and the drastic rise in the number of deceptive ads, this step is likely to stop the mayhem, for now.
There’s a good side and bad side to it. But in the long run, it certainly pulls the plug out of those, who were trying to raise capital through ICO’s. By all means, it is a fair move and that’s what, most of the experts believe.
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