Not a good day in the boxing ring for the ICO and Cryptocurrency market, with a “1-2” jab, bop, and weave. First, the big jab came swinging in from social media behemoth Facebook, stating that it’ll block any marketing promoting cryptocurrency services and ICO’s.
The social networking site updated its advertising policies today to improve the “integrity and security” of financial services ads, now the crypto community has joined the banned category list along with the likes of tobacco, drugs, dietary supplements, weapons and pornography. Promotions from companies with “misleading or deceptive promotional practices,” including cryptocurrencies and ICO providers. The new policy also applies to Instagram.
Site product management director Rob Leathern provided several examples of these “misleading” ads:
“Click here to learn more about our no-risk cryptocurrency that enables instant payments to anyone in the world.”
“New ICO! Buy tokens at a 15 percent discount NOW!”
“Use your retirement funds to buy Bitcoin!”
Leathern wrote in a blog post that many ICOs and cryptocurrencies are “scams or deception… that are not currently operating in good faith.” This “intentionally broad” ruling is subject to change.
“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.” This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve.”
In just 24 hours, the cryptocurrency and ICO markets have received two major blows, the AriseBank ICO had been endorsed by boxing legend Evander Holyfield, who although may have acted innocently in the ICO promotion, has not been ruled out of engaging in potentially “unlawful activity” according to the SEC.
SEC took its actions against AriseBank a step further than it had in previous cases, appointing a receiver to take custody of the digital assets held by the company
“This is the first time the Commission has sought the appointment of a receiver in connection with an ICO fraud. We will use all of our tools and remedies to protect investors from those who engage in fraudulent conduct in the emerging digital securities marketplace,” said Steven Peikin, Co-Director of the SEC’s Enforcement Division.