Popular social media platform TikTok has banned its users from promoting financial products and services, including those related to cryptocurrency. The company also prohibits ads relating to crypto.
Crypto is on TikTok’s list of prohibited products and services, which also includes lending and management of money assets, loans and credit cards, trading platforms, foreign exchange, pyramid schemes and investment services.
In most countries, including the US and UK, TikTok bans “ads promoting virtual currencies/cryptocurrencies (eg bitcoin and ethereum), as well as cryptocurrency trading platforms and advisory services”.
TikTok’s move came after individuals were warned about taking financial information from TikTok amid concerns it could be misleading young savers or investors.
Martin Bamford, head of client education at Informed Choice, believes TikTok is “clamping down on directly or indirectly sponsored content which leads to an affiliate link, for example, to sign up to a trading platform and get free stocks”.
We see a huge amount of this branded content on TikTok, usually from poorly informed commentators, who lure in followers with promises of riches but in reality are making their money off people signing up via affiliate links.Martin Bamford, head of client education, Informed Choice
Many people have been using TikTok to promote cryptocurrencies, including Dogecoin (DOGE). Some TikTok videos have even pumped the prices of various cryptocurrencies.
Ban Good for Consumer Protection?
Almost exactly a year ago, the Australian government warned that TikTok was under scrutiny for any potential risks it might pose to user privacy or even national security.
The ability to advertise on TikTok is still an option for some, as the real issue lies with influencers who are paid a flat fee or commission for endorsing certain coins, exchanges, dApps, or other related products.
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