Facebook bans ads promoting cryptocurrencies, ICOs

On Tuesday, in one of its blog posts, Facebook outlined its new policy that prohibits ads that promote financial services or products that are associated frequently with deceptive or misleading promotional practices. The platform will revisit the policy and its enforcement methods as "signals improve", the company said.

By this advertisement policy, Facebook is looking forward to strengthening the trust level from the users and also asked all communities to report any kind of deceptive ads.

Leathern said the company wanted to make it "harder for scammers to profit from a presence on Facebook".

Earlier this week, the SEC filed a suit against cryptocurrency banking company AriseBank for alleged fraud and issuing unregistered securities during its recent ICO.

Facebook's move, meanwhile, will surely have an impact on businesses and people like James Altucher, who have promoted their name in the crypto world by heavily advertising on Facebook.

Social media giant Facebook (FB) is taking a stance against ads for bitcoin and other cryptocurrencies. In another attempt at regaining the reliability of the website, Facebook has banned all the advertisements promoting cryptocurrencies like bitcoin.

ICO's offer people the chance to buy into new cryptocurrencies before they are launched, which has let some companies to use it as a way of raising huge sums of cash, without regulations.

According to Bloomberg, Facebook's policy also extends to "binary options trading", which is "a risky derivative with an all-or-nothing pay-off". Facebook encourages users to continue reporting ads that violate its policies. The cryptocurrency ads had increased during the time when Bitcoin price was sky rocketing.

The offerings are a means of raising capital through the sale of digital currency which can then be traded.