Wildly popular video-sharing app TikTok has launched a crackdown on the promotion of financial services products by influencers, including cryptocurrencies, stock trading, and more.
Your favorite Tiktok influencer will no longer be able to promote cryptocurrency projects
TikTok — the platform partly responsible for the rise of meme coins like Dogecoin — has banned its users from promoting cryptocurrencies. In addition to crypto, a range of other financial products and services, such as loans, credit cards, and forex trading are also prohibited under the recently updated branded content policy.
Source: TikTok Branded Content Policy
The move is aimed at halting a growing tide of unsuitable high-risk investments and frauds being promoted on social media, but will also hit reputable financial firms.
Banks and many fintech companies have taken advantage of the benefits of advertising and partnering with influencers on TikTok. These include Monzo and Revolut, as well as the Plum savings app. But these new regulations will prevent that. There are concerns that some unscrupulous users are taking advantage of the credibility and lack of investment skills of young people.
Its advertising policy, which allows financial services companies to advertise to people over the age of 18, remains unchanged. Adverts promoting virtual currencies and cryptocurrencies are already prohibited, as are pyramid schemes and get-rich-quick schemes.
The company has also advanced its approach to user safety by implementing a system that will automatically delete any videos that violate its rules:
“Over the next few weeks, we’ll begin using technology to automatically remove some types of violative content identified upon upload, in addition to removals confirmed by our Safety team.”
Following the recent boom and bust cycle of the cryptocurrency market, regulators are increasingly concerned about cryptocurrency marketing and advertising. Other companies are also starting to take a harder line on scam adverts on their platforms. Google announced plans to clamp down on saving and investing scam adverts in the UK.