Facebook has announced it was open to emerging technologies in this space but many organizations were not acting in "good faith" when seeking to attract new users and adopters of virtual currencies.
Facebook has urged its users to report any adverts the company's security measures may have missed.
They have admitted it would not always catch every ad for a cryptocurrency promotion.
“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.”
Using Facebook adverts to generate a "buzz" around a new scheme or project is a particularly effective method, especially when paired with influencer endorsement through various social media platforms.
Raising money using an ICO has been banned in South Korea and China, and regulators in other countries are warning against getting involved.
Facebook has said its new policy was "intentionally broad" and would evolve over time, which is positive news.
Their policy states: "Ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency."
Under the new policy, advertising using phrases such as "New ICO! Buy tokens at a 15% discount NOW!" or "Use your retirement funds to buy Bitcoin!" would not be permitted, Facebook said.
However, we believe this is a postive for the crypto currency world as many organizations and individuals will be shook out and in time this will only strengthen bitcoin and crypto currencies as a whole, leaving the people who are looking to make a positive impact and change for the better left to get their word out there through Facebook once again.
It's a shame that the few have to ruin it for the rest,
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