Facebook Bans Crypto And Binary Trading Ads

John Medley

The overheated ICO and cryptocurrency market suffered another blow yesterday. Facebook is now banning ads on its social media site that promote cryptocurrencies, particularly ICOs and binary options. The announcement came from a Facebook blog post written by  Rob Leathern, Product Management Director.

“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.”

Rob Leathern

User complaints of the ads are thought to have caused the decision. ICOs and binary option trading for cryptocurrencies are exceptionally risky and none of the ads represent this risk accurately inevitably leaving many retail investors holding the bags.

They even included some examples that may look familiar:

Facebook ad ban.png

Bitcconnect suffered a collapse of 90% in a matter of hours last month and it was coins like this that were using Facebook advertising to drawn in retail traders. Which is why many have welcomed the news as they see it as an important step towards clearing up the ICO market that has become rife with malpractice and scam activity.

Advertising on sites like Facebook was one of the best ways for ICO scammers to get into the pockets of retail investors. Without out this option ICO evangelists hope this will sort the wheat from the chaff.

Facebook Will Launch Libra Next Year Despite Regulatory Pressure, Says David Marcus

  • David Marcus says Facebook is still planning to launch libra next year.
  • Called user adoption for the digital currency a greater challenge than regulation.

David Marcus, head of Facebook’s digital currency project libra, said that the company remains undeterred in launching next year, despite mounting regulatory pressure

Libra Planning Launch for 2020

Speaking with Swiss newspaper NZZ, Marcus said that Facebook is still on track to launch the digital currency in 2020,

The goal is still to launch Libra next year. Until then, we’ll need to address all questions adequately, create a suitable regulatory environment.

Since being officially announced in June, libra has come under fire from regulatory bodies around the globe concerned about the impact of the social media platform launching a de facto currency. Libra will reportedly be backed by a basket of real-world assets and have a 28-member organization to oversee the project to provide greater trust and security.

Nonetheless, Marcus told NZZ that it was unlikely libra would become a mainstay for real-world transactions. Instead, he views the project as a means for cross-border payments and settling small sums. 

He said, 

It’s unlikely in any case the people will pay for an espresso in Switzerland, Germany or France with Libra in the future.

Marcus also highlighted the challenge of user adoption, calling it an even greater hurdle for Facebook’s digital currency than overcoming regulatory concerns.

Earlier in the year analytics firm Diar published a report on the shifting landscape of Facebook’s user demographics, concluding that a digital currency would be unlikely to gain widespread adoption on the platform. 

Featured Image Credit: Photo via Pixabay.com