Tags: Media Bias | facebook | bitcoin | cryptocurrencies | ico | ads

Facebook Bans Bitcoin, ICO Ads for Being 'Misleading, Deceptive'

Facebook Bans Bitcoin, ICO Ads for Being 'Misleading, Deceptive'
(AP)

Tuesday, 30 January 2018 04:42 PM

Facebook is banning ads on its social network that promote cryptocurrencies, initial coin offerings, and binary options, saying they are "frequently associated with misleading or deceptive promotional practices."

The policy will be "intentionally broad" while Facebook works to understand which ads are deceptive or misleading, from companies "not currently operating in good faith," the company said Tuesday in a blog post. Facebook, along with its other properties including Instagram, will not allow ads that say "Use your retirement funds to buy Bitcoin!" for example, or those that promote binary options trading, a risky derivative with an all-or-nothing payoff.

"We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception," Facebook said.

There have been a number of instances where people or companies have raised money through an ICO, or initial coin offering, with no apparent business behind it. Regulators have recently started to crack down. The U.S. Securities and Exchange Commission said this week it got a court order freezing the assets of an alleged initial coin offering scam by AriseBank.

Still, enthusiasm for bitcoin and other volatile digital currencies has minted many millionaires. Public companies have capitalized on the hype, with everything from packaged-food makers to sports-bra manufacturers seeing shares surge after linking their firms to crypto, sometimes just by name.

Earlier this month, Chief Executive Officer Mark Zuckerberg referred to cryptocurrencies and other technologies that decentralize power as a trend he was studying in 2018, part of an effort to correct problems on the social network. While some enthusiasts took this as a positive sign for digital currencies, Zuckerberg wrote at the time he was looking at both the positive and negative aspects of the technology.

Bitcoin has a history of big run-ups in price followed by steep declines. In 2017, it surged more than than 1,700 percent, and almost touched $20,000. Now it trades around $10,000.

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Saying ads promoting cryptocurrencies, initial coin offerings, and binary options are "frequently associated with misleading or deceptive promotional practices," Facebook has unilaterally banned them from its social network.
facebook, bitcoin, cryptocurrencies, ico, ads
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2018-42-30
Tuesday, 30 January 2018 04:42 PM
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