Facebook has banned deceptive advertisements involving financial products such as cryptocurrencies and initial coin offerings.
Under its new policy, 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” will no longer be allowed, the Hong Kong Economic Journal reports, citing a statement published on the Facebook Business page on Wednesday.
While admitting that such a policy is deliberately broad, the social media giant said it would work to better detect deceptive and misleading advertising practices, adding it will step up enforcement across the company’s platforms including Facebook, Audience Network and Instagram.
Facebook said it hopes people can keep discovering and learning about new products and services through its ads, without having any fear of scams or deception.
It said, however, that a lot of companies that are advertising binary options, ICOs and cryptocurrencies “are not currently operating in good faith”.
The company said it will revise the policy and how it is enforced when it is able to grasp new ways to “detect deceptive and misleading advertising practices”.
Meanwhile, South Korea’s finance minister said the government has no plans to stop cryptocurrency trading.
“There is no intention to ban or suppress cryptocurrency [market],” Reuters quoted Finance Minister Kim Dong-yeon as saying on Wednesday.
He said the government’s immediate task is to regulate the exchanges dealing with the virtual currency.
South Korea’s customs service said it has uncovered illegal foreign exchange trading involving cryptocurrencies worth nearly US$600 million.
Only bank accounts with the real names of owners are allowed to be used in cryptocurrency trading, effective from Tuesday, the report said.
This article appeared in the Hong Kong Economic Journal on Feb 1
Translation by Jonathan Chong with additional reporting
[Chinese version 中文版]
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