Facebook to ban ads promoting cryptocurrency, initial coin offerings

Facebook will implement this policy across Instagram and Audience Network as well.

Facebook to ban cryptocurrency-related ads (Reuters)

Facebook on Tuesday said it will ban ads promoting financial products and services tied to cryptocurrencies and initial coin offerings. Bitcoin, the most popular cryptocurrency has been all the rage for the past few months. Its popularity has soared globally causing a rise and fall in its value every now and then.

"We've created a new policy that prohibits 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," Facebook's product management director, Rob Leathern, said.

The new policy will be implemented across its platforms, including Facebook, Audience Network and Instagram, the company said.

The sudden craze for cryptocurrency has also alarmed countries as multiple reports of hacking cryptocurrency have emerged. Recently, hackers reportedly stole 'Stellar' cryptocurrency worth $400,000 from BlackWallet.

In an even major case, Japan-based digital exchange Coincheck halted all its services following reports of being hacked. Coincheck said it fell into a loss of half a billion US dollars worth of 'NEM' virtual currency. The Financial Services Agency (FSA) sanctioned Coincheck giving the company until February 15 to hand in detailed reports.

South Korea has also implemented regulations to monitor cyrptocurrency exchanges in the country. CNBC reports South Korea's financial regulator issuing new guidelines for cyrptocurrency exchanges which will take effect from January 31.

With inputs from Reuters.