Facebook ban on cryptocurrency adverts and Bitcoin takes the brunt
It’s not been an easy time for Bitcoin recently. The most popular form of digital currency has taken another nosedive after a Facebook ban was announced for adverts about investments and initial coin offerings (ICOs).
Condemning the sometimes-illegal or misleading practices surrounding some forms of crypto investing, Facebook released a statement announcing the blanket ban on adverts pertaining to digital currency investments. “Misleading or deceptive ads have no place on Facebook,” said social media platform that currently has a reach of over 2 billion people worldwide. The ban also prohibits advertising on any of Facebook’s other properties like Instagram or websites that are considered to be part of Facebook’s “audience network”.
“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency. There are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”
The ban has seen Bitcoin take another plunge towards its lowest price in two months, currently sitting at around half of the peak we saw in late 2017. Given Facebook’s incredible reach, the public statement increases public fear over the legitimacy of ICOs and coin exchanges – fears that aren’t quelled by the recent reports of high profile hacks in Japan and North Korea.
The news also comes as Bloomberg reports that Commodity Futures Trading Commission (CFTC) has subpoenaed Bitfinex and Tether, a company that issues tokens based on the fact they’re backed up by tangible currency – a claim that has not been proved, leading many sceptics to wonder if the digital currency could disappear into nothing at any point. “We routinely receive legal process from law enforcement agents and regulators conducting investigations,” Bitfinex and Tether said Tuesday in an emailed statement. “It is our policy not to comment on any such requests.”