Facebook imposed a ban on advertisements for Bitcoin and other cryptocurrencies days following the warning of the financial watchdog of the United Kingdom regarding online scams that involve the digital currencies.
The social media giant, which has over 2bn users across the globe, is also set to ban the promotion of financial products that are “frequently associated with misleading or deceptive promotional practices,” which include initial coin offerings (ICO) and binary options.
In an update to the ad policies of the company, Rob Leathern, the product management director of Facebook, said that many companies that are advertising such products are “not currently operating in good faith.”
The said ban will also apply to Instagram.
Adding that it is also encouraging the users to report any ads that will break the new rules, Leathern stated: “This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve.
Advertisements that encouraged people to place their retirement funds into bitcoin and offers of a discount on purchasing tokens via an ICO were cited as one of the examples of the practice.
The move comes days after the Financial Conduct Authority warned regarding scams that involve the same products and that various fraudsters are increasingly targeting people online.