Following the upsurge of deceptive ads mostly associated with financial products and services, Facebook has finally decided to ban all ads that promote the same. This includes ads promoting initial coin offerings, binary options and Cryptocurrencies.
A lot of the companies advertising binary options, according to Rob Leathern, Facebook MD, “are not operating in good faith”. It was therefore decided that a prompt review of the policy was impending. It later resulted in the ban. With this move, Facebook targets at eradicating the number of its users falling for these scams on their site.
Effects Already Been Felt
Hours following the announcement, the effects were already been felt. Prices began slumping for leading Cryptocurrencies. One most notable is the escalating prices of Bitcoin that can be attributed to the announcement by Facebook.
All while this was ongoing, Bloomberg was reporting a summons for Bitfinex (a website that help users buy and sell tether and Bitcoins) by the CFTC (Commodity Futures Trading Commission). However, their representatives rubbished it off as a routine legal exercise by law enforcers and declined further comment on the issue.
The Regulation threats that have affected most Cryptocurrencies recently have not spared Bitcoin in spite of the currency having had an extraordinary year in 2017.
Facebook went ahead to point out their core principles that guided them to their decision. One that all advertising should be safe and two, should put people’s interest first.
This move is seen as a contradiction to the statement given by its CEO. Mark Zuckerberg who had previously applauded the benefits Cryptocurrencies had brought into the digital financing markets
Report Deceiving Ads
According to some experts, this decision was long-coming. Facebook suffered most from the deception its users largely due to its vast network of users. The decision seeks to make people trust Facebook again as their number one advertising and consumer platform.
In addition, Facebook has requested its 2-billion-strong community to forward contents that they feel violate Facebook’s policies by simply clicking the report icon on the upper right hand side of the ad.