Cryptocurrencies are a Wild West of sorts — and Facebook has had enough.
The social network is banning all ads related to bitcoin, cryptocurrencies, and ICOs, it announced on Tuesday, as it attempts to crack down on scams and fraud.
The new rule “prohibits financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.”
It’s a far-reaching policy, and Facebook describes it as “intentionally broad.”
(For the uninitiated, initial coin offerings, or ICOs, are a largely unregulated method for company fundraising that involves selling investors cryptographic assets, in a similar vein to an IPO.)
Bitcoin and other cryptocurrencies are insanely hot right now — but the space is also riddled with scams, fraud, and other risks.
This week, the SEC shut down one allegedly fraudulent ICO that claimed to have raised $600 million, and it’s not uncommon for exchanges to lose hundreds of millions of dollars worth of customer funds in apparent hacks.
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SOURCE: Business Insider, Rob Price