Facebook have recently banned the advertising of cryptocurrencies on its platform, referring to “deceptive promotional practices”. The ban on terms including bitcoin, blockchain and crypto comes after a surge in ads promoting crypto-related scams.
Facebook’s product management director, Robert Lathern, has stated in a blog post that “the policy specifically prohibits ads that promote those types of products and services that are frequently associated with misleading or deceptive practices”. As expected the ban has already impacted on the crypto industry. It has effectively hindered legitimate businesses promoting their products and services on Facebook channels.
Critics have labelled the ban preemptive and overly stringent, saying that the restrictions give no allowance for companies that are promoting legitimate cryptocurrency offerings. Coming at a time of increased scrutiny for the social media giant, Lathern has noted that the ban is intentionally broad and that Facebook will continue to work on more effective ways to detect misleading ads for cryptocurrencies, binary options and ICOs.
Since Facebook’s announcement of the ban, Google and Twitter have implemented similar restrictions. In a statement, Twitter said that they are “aware of this form of manipulation and are proactively implementing a number of signals to prevent these types of accounts from engaging with others in a deceptive manner.”
It is difficult to predict how this ban will affect the future of advertising for legitimate businesses within the cryptocurrency ecosystem, however we look forward to hearing from industry experts in this space and their opinions on whether these restrictions will deter consumers from investing in crypto markets.
Join industry leaders and financial experts at the world’s largest fintech conference, MoneyConf, in Dublin from June 11-13. Speakers include Sarah Friar, CFO Square, Kristo Kaarmann, CEO Transferwise, and Jon Matonis, founding director, Bitcoin Foundation.