Facebook has updated their advertisement policy judging from an official release. A new strategy excludes adverts whose composition are associated with binary options, crowdsales and digital currency based advertorials.
The social media giant made the new policy known through their Product Management Director Bob Leathern on January 30, effectively signaling a restriction of the most effective advertisement channels available for cryptocurrency based offerings. According to Leathern the new stance places a restriction on certain kinds of adverts that are spurious, especially those that are cryptocurrencies related.
Digital currencies, having become mainstream issue in the past several months have attracted dubious entities who try to lure users through fallacious advertisements. He said that many of these individuals conduct marketing campaign with the intent to hoodwink the gullible or uninformed.
The prohibition was most unexpected by many in the crypto community who have been Using Facebook as a channel for the advert, especially for ICOs. ICOs have primarily created publicity for their token sales via Facebook, Twitter, Instagram, and Telegram.
The ban was surprising especially because Mark Zukerberg, the Facebook founder had earlier announced that they were going to study cryptocurrencies more closely in 2018. He further said that decentralization could be a channel of redistribution of wealth among people from the very centralized financial system. A supposedly positive statement made the ban a surprise to many in the crypto community.
Nevertheless, indications abound that the ban may be temporary, a statement says the social media management will reconsider the rule as situations change, urging users to make complaints against adverts which do not comply with the position of the company.
Leathern said that the novel approach has become of the essence to ensure that scammers do not continue taking advantage of the foregoing policy. The essence of the change was to ensure that users are protected from exposure to dishonest advertisements via improvement of the trustworthiness of offers presented to them.
The Facebook management conceded to be aware that the scope of the restrictions was encompassing, saying that it was intentional, as they would be studying the situation closely to find mechanisms of identifying advertisements whose intent is to mislead, especially those associated with financial offers with leanings on inexplicable profit.
The novel advertising guidelines found in subsection 29 states that advertisements must not promote financial services and products that are frequently associated with misleading or deceptive promotional practices.
Mixed reactions trailed the prohibition. Dejun Quian, CEO of Fusion was of the opinion an intentional blanket ban on those class of products, though may be protective of users is not the best action to take, but rather the easy path for Facebook. He said that such policies are hindrances to technological developments akin to the suspension of ecommerce to protect users from the hazard of purchasing fake products.
James Roe, CIO at Breakpoint Trades said that the new concept resonates with how every major firm would handle financial services advertisements. Roe said that digital currencies qualify as money-related services and should be treated as such. The speculative nature of cryptocurrencies should be a reason for caution in advertising them.
There are some in the crypto community who think that the ban was to avoid legal actions should the cryptocurrency bubble burst. These are community members that think that Mark Zukerberg doesn’t want suits alleging that Facebook misled investors into putting money into the volatile cryptocurrency investment.