Chairman of Canada’s Binary Options, Jason Roy has said that they were pleased with the recent move by Facebook to ban cryptocurrency and ICO ads and is urging Google to follow suit.
Regulator calls on Google to follow Facebook’s Footsteps to ban Binary option, ICO and Cryptocurrency Ads
Their main concerns according to the chairman is that these types of ads make it easy for scammers to find their victims. He told The Times of Israel that they “have been talking to Google” on the same issues and “are waiting for them to take similar actions” of enacting a specific ban.
But Google already has a ban on misleading ads and misrepresentation regardless of the category. The company does not have a special treatment for ads in the categories of “binary options” or “cryptocurrencies” as would ask Roy, who is also a senior investigator at the Manitoba Securities Commission.
Facebook enacted the ban after following many months of pressure from the FBI and Canadian securities regulators. Roy said it happened after FBI and Canada’s Binary Options Task Force explained to Facebook their concerns on the issues.
Guardians of the old binary options companies are now ICO owners
Apparently, binary options are banned in places like Israel where they were associated with many scams and fraudulent activity. This caused many such companies in the country to change from binary options trading to selling cryptocurrencies and ICOs.
While it is clear that there are cryptocurrency Ponzi schemes and scam ICOs, not all cryptocurrencies are fraud or scams. This means a blanket ban is also a move in the wrong direction and points to the need for identifying legitimate projects.
“We would look at what they were doing. And determine if this is an activity that can be registered and if they had in fact registered,” he said. “We would look to see if they were violating our rules. Because any legitimate company that’s going to be offering a type of investment should be following the rules. Irrespective of whatever jurisdiction they’re offering those securities in. That’s our first test in terms of the legitimacy of a company.”
Google Adwords Volume surpasses Facebook Ad’s volume
According to him, one concern was that in Israel, most binary options companies were converting to cryptocurrency companies with the same motives of fraud and scamming people. The same has affiliates from all over the world.
One former Pay Per Click expert told Times of Israel that Google AdWords is the Achilles heel of fraudulent forex, CFD, binary options and cryptocurrency companies. Not only Israel but many other countries are active in Google Adwords. He claims, Facebook contribute only 15-20% traffic but Google is the paramount source to derive significant traffic for these binary companies.
According to sources, binary options companies bid higher amount to get a place on top pages of Google.
“Usually a legitimate company that advertises on Google will pay 50 cents a click, or maybe a dollar or two because they’re just trying to get normal people to come in. But you’re bidding against your competitors. If your competitor started bidding $20, they would show up above you. If you wanted to show up above them, you would have to bid $21.”