Facebook Bans Cryptocurrency and ICO Ads
Every day it seems we are getting news regarding the regulation of bitcoin and all other cryptocurrencies. Mostly the news is coming out of South Korea where regulations on cryptocurrencies are such a hot issue. However today it was a big corporation outside of South Korea that made headlines. Facebook announced today that they will be banning all cryptocurrency advertising on their platform as well as ICOs. Many predicted that big corporations would start seeing cryptocurrency as a threat but in the case of Facebook, they might just be trying to protect their consumers.
Protecting their Users from Scammers
The banning is for any form of ads related to binary options, cryptocurrencies, or ICOs. This seems to be their way of stopping the promotion of people that pay to play on Facebook. These people are basically people who are looking to scam. They say they are looking to raise money but they actually have zero plans to raise money. So Facebook users might click on an ad because they are interested in cryptocurrency, then get scammed.
Since most are new to cryptocurrency there are many situations where people are getting scammed. Facebook looks to avoid this situation before it gets out of hand. ICOs are also being banned which shows how broad this ban is going to be.
Bad News for Cryptocurrency Companies
However, this is bad for reputable cryptocurrency companies that would like to use Facebook to promote their business. Facebook has the biggest audience anyone can reach. Therefore, Instagram who will probably at some point adopt the same policy. Facebook will continue to buy more and more social media companies which will, in turn, make cryptocurrency advertising very difficult.
What will Google do?
Now we will need to wait and see what Google does. Will google welcome this extra ad revenue from cryptocurrency ads? Or will they follow Facebook and ban them? If Google decides to follow Facebook, they are changing how cryptocurrency is promoted in the future.