Facebook and Instagram bans adverts for bitcoin, cryptocurrencies, initial coin offerings and binary options

Facebook is banning adverts for bitcoin and other cryptocurrencies just days after the UK’s finance watchdog warned of scams online involving the digital currencies.

The social media giant, which has more than 2bn users around the world, will also ban the promotion of financial products “frequently associated with misleading or deceptive promotional practices”, including binary options and initial coin offerings (ICO).

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In an update to its ad policies, Facebook’s product management director Rob Leathern said many companies advertising such products are “not currently operating in good faith”.

The ban will also apply to Instagram.

“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,” said Leathern, adding that it is also encouraging users to report any ads that break the new rules.

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Adverts that encouraged people to put their retirement funds into bitcoin and offers of a discount on buying tokens through an ICO were cited as an example of the practice.

The move comes just days after the Financial Conduct Authority warned of scams involving the same products and that fraudsters are increasingly targeting people online.