Facebook has announced that it is now banning the use of paid ads for cryptocurrencies and ICOs.
Cryptocurrencies are still seen as the Wild West and in part that is due to the cowboys out there running fake or misleading ICOs, sucking people in with no intention of developing a viable currency or moving crypto forward. We can see why Facebook has felt the need to act - consumers need to be protected – it’s just a shame this ban has to be so heavy-handed as it risks punishing genuinely well-intentioned businesses and technologies. However, consumer protection is important and hopefully as more regulation comes in around cryptocurrencies and ICOs, Facebook will be able to provide access again.
This ban comes at a time when lots of governments and international organisations are discussing regulating cryptocurrency. For the protection of consumers and the longevity of cryptocurrency, regulation is necessary and inevitable. The time is right for prospective regulators to reach out and have proper conversations with the voices in cryptocurrency about how to bring in productive regulation that
- protects people and builds trust and
- does not hinder innovation.
Facebook has banned all advertising for cryptocurrencies saying that they are “frequently associated with misleading or deceptive promotional practices”. “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” they added. 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. Looks like this act is nightmare for the cryptocurrency companies promote cryptocurrencies, initial coin offerings and binary options.