Facebook Inc. (NASDAQ: FB) announced on Tuesday that it will ban all forms of advertisement that promote cryptocurrencies, including bitcoins, said Product Management Director Rob Leathern.
Bitcoin prices slide under $10,000 once again following Facebook’s announcement.
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.” wrote Leathern.
Facebook says that policy is intended to better its detection of deceptive and misleading advertisements, as the company will begin to enforce its policy across its platforms.
The policy is most likely being implemented due to wild volatility nature of cryptocurrencies lately. Prices of cryptocurrencies fluctuate uncontrollably daily which has costed many investors.
Facebook’s platform heavily revolves around advertisements, which can persuade its users by what they see. Facebook’s users could also be blaming the social media platform for their losses due to advertisements posted by potential scammers.
Facebook also says that the company is implementing the new policy to improve the integrity of its detection and security on its platform. This is stemmed from Facebook’s recent scandal of the Russian ads meddling with the 2016 U.S. Presidential Elections.