Facebook has said it will block any advertising promoting cryptocurrency products and services. The company said it was open to emerging technologies but many companies were not acting in “good faith” when extolling the virtues buying into virtual currencies.

Recently, a wave of new currencies have emerged, seeking to piggyback Bitcoin’s huge increase in value. Facebook urged users to report any ads the company’s security measures missed.

It admitted it would not always catch every ad for a cryptocurrency. “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” wrote Rob Leathern, product management director for Facebook Business.

“That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.” US blocks coin offering by ‘scam’ bank US regulator halts initial coin offering An ICO – initial coin offering – encourages people to buy into new cryptocurrencies before they launch in the hope they are one day worth a lot more money as the coin becomes more popular. Some companies have used ICOs as a way to raise great sums of money, but without the regulatory burden associated with raising cash though more traditional investment channels.

Because of this, many ICOs have simply disappeared, with little recourse for the “investor” – a loose term, since those who pay into ICOs do not typically get a genuine stake in the new company. Using Facebook ads to generate “buzz” around a new scheme could be a particularly effective method, especially when paired with celebrity endorsement. Read more from bbc.com…

thumbnail courtesy of bbc.com