Facebook Bans Cryptocurrency and ICO Ads in Bid to Stave Off Scams


Social media giant Facebook has officially decided to ban advertising for all ICOs and cryptocurrencies, including Bitcoin, in a bid to clamp down on “misleading or deceptive promotional practices” on its network.

The Menlo Park, CA company announced the blanket ban through a blog post on Tuesday, January 30th, after deciding that too many cryptocurrency related advertisements were being used to promote dubious projects. Facebook's blog post particularly singled out a type of financial betting called binary options trading, which is a popular but risky way to make bets on cryptocurrency.

With over 1.15 billion monthly active users, Facebook is one of the most powerful platforms for targeted advertising, especially for aspiring startups looking to attract new users. ICOs have proven to be an effective way for many startups to raise money, with initial coin offerings raising the equivalent of $3.7 billion in 2017.

However, ICOs have so far remained outside the purview of government legislation, presenting an excellent opportunity for scammers and fraudsters to pull money from the pockets of unsuspecting people looking to cash in on the cryptocurrency hype. In fact, Facebook's ban on crypto ads comes right on the heels of a decision by the US Securities and Exchange Commission to shut down the initial coin offering of Dallas-based startup AriseBank, which claims to have raised over $600 million.

Latest news

Former OKEx CEO Chris Lee Joins Rival Crypto Exchange Huobi Chris Lee, the former chief executive of OKEx, the world’s largest cryptocurrency exchange by volume, has announced he is joining rival platform Huobi as its vice president of global business development just one week after stepping down.
Japanese Exchange Coincheck Stops Trading Four Privacy-Focused Altcoins Japanese cryptocurrency exchange Coincheck has confirmed that they will stop the trading of four anonymity-centered altcoins in order to comply with the demands of regulators.
ICORating to Speak at Tokenomics Conference in Tallinn ICORating Business Development Manager Zufar Gatiyatov will be an official speaker at Tokenomics, an emerging token conference set to take place at Tallinn Technological University in Tallinn on May 24 and 25.