Facebook’s ban on cryptocurrency adverts has led to an 11% drop in the value of bitcoin
Investors have become spooked by Facebook’s advert ban on cryptocurrencies, causing bitcoin to drop to its lowest value since November 2017.
The popular social media platform has decided to ban all ads promoting cryptocurrencies, in an effort to prevent people from advertising that the company is calling ‘financial products and services frequently associated with misleading or deceptive promotional practices.”
Those who operate legal, legitimate business will not be able to advertise things like bitcoin, other cryptocurrencies and initial coin offerings (ICO)
Ads that violate the company’s new policy will be banned on Facebook’s core app, and also on other platforms where Facebook sells ads such as Instagram.
One of Facebook’s ad tech directors, Rob Leathern, said: “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams and deception.
“That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.
“This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices.
“We will revisit the policy and how we enforce it as our signals improve.”
Examples of banned adverts offered by Facebook include “Click here to learn more about our no-risk cryptocurrency that enables instant payments to anyone in the world” and “Use your retirement funds to buy Bitcoin!”
The cryptocurrency boom has led to a number of scams and price fluctuations that have cost a lot of people.