Facebook announced on Tuesday its plans to ban all ads that promote Bitcoin and other digital currency exchanges, initial coin offerings (ICOs) and binary options.
The social network said the new policy aims to protect users from scams, describing such financial services as “frequently associated with misleading or deceptive promotional practices.”
In a company blog post, Rob Leathern, Facebook’s Product Management Director, explained:
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”
Facebook noted the policy is “intentionally broad” as it works to better detect deceiving advertisement practices across its platforms, including Facebook, Instagram and Audience Network.
“We will revisit this policy and how we enforce it as our signals improve,” added Leathern.
Meanwhile, the company also encouraged users to report content that violates its advertising policies, as it “may not catch every ad that should be removed.”
“This policy is part of an ongoing effort to improve the integrity and security of our ads, and to make it harder for scammers to profit from a presence on Facebook.” Leathern said.
Earlier this week, the SEC filed a suit against cryptocurrency banking company AriseBank for alleged fraud and issuing unregistered securities during its recent ICO.