TikTok bans influencers from promoting cryptos on its platform

TikTok bans influencers from promoting cryptos on its platform

TikTok, the video-sharing focused social networking service owned by Chinese company ByteDance, has reportedly upgraded its branded content policy to prohibit all financial products and services, including influencers from promoting cryptocurrency, share trading, and buy-now-pay-later schemes.

As per the company, the move has been taken to combat rising misuse of the immensely popular media platform for committing scams, frauds and unethical behavior that might violate someone's privacy. The new TikTok guideline will impact legal, financial organizations, as they will no longer use influencers to promote their products.

By removing the option to pay influencers or TikTok for advertising, cryptocurrency's time on the platform could be nearing its end. However, the company's advertising policy remains unchanged, allowing financial services companies to advertise to customers above the age of 18.

Incidentally, the new rule comes weeks after Beijing executed a ban on bitcoin mining activities due to "environment concerns," prompting miners to close the business and leave mainland China.

According to TikTok's updated policy under the heading "Globally Prohibited Industries", all branded content promoting financial products and services, including but not limited to credit cards and loans, buy now pay later (BNPL) services, foreign exchange, cryptocurrency, forex trading, trading platforms, and so on, is prohibited.

Notably, the policy cannot be accessible in India. The government has already banned the social networking platform TikTok in 2020, coupled with several apps from Chinese companies, which was confirmed as a permanent ban by the government in January 2021. Although, some sources have validated the new policy from TikTok.

Many crypto-trading companies recruit TikTok influencers, often branded as "Fintok" consultants, to expand their reach. As a result, some may provide unreliable and unauthorized financial advice regarding investing in assets such as Bitcoin and Dogecoin to young and immature investors who want to grow their money quickly but lack a thorough understanding of the market.

Source Credit - https://gadgets.ndtv.com/cryptocurrency/news/tiktok-bans-influencers-from-promoting-cryptocurrency-bitcoin-dogecoin-2489621