Facebook Inc bans advertisements related to cryptocurrencies and ICOs

Mark Zuckerberg-led social network Facebook Inc has banned advertisements related to cyptocurrencies and initial coin offerings (ICOs) in an effort to ensure that the platform is not used for misleading or deceptive practices.

''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,'' Rob Leathern, product management director at Facebook, wrote in a blog post.

''Two of our core advertising principles outline our belief that ads should be safe, and that we build for people first. Misleading or deceptive ads have no place on Facebook,'' he added.

Cryptocurrencies, especially Bitcoin, Ethereum and Litecoin, have gained popularity with many people looking to earn profits by investing in them. Spam app developers and malicious marketers are also trying to dupe or mislead people taking advantage of the popularity. Recent speculation that Reliance Jio Infocomm, the telecom arm of conglomerate Reliance Industries Ltd may launch its own cryptocurrency has led to the creation of several fake apps and websites promising 'JioCoin' rewards and benefits.

According to the social network, the policy has been kept wide so that it can lead to development of a system to efficiently detect deceptive and misleading advertisements or ad practices.

Under the new policy, ads cannot promote such services which also include those involving initial coin offerings.

The offerings are a means of raising capital through the sale of digital currency which can then be traded. The digital coins or tokens are seen as an interest in a company.

According to Facebook, examples of fraudulent phrases include ones like "use your retirement funds to buy Bitcoin!''