TikTok, a Chinese-owned video-sharing app, has changed its branded content policy to prohibit all financial services and goods from being promoted, including influencers advocating cryptocurrencies, stock trading, and buy-now-pay-later schemes.
According to the firm, the change is intended to combat the growing use of the enormously popular social media platform to commit frauds, scams, and dishonest behavior that may infringe on people’s privacy. However, it comes only weeks after Beijing imposed a ban on bitcoin mining activities due to “environment concerns,” prompting miners to close up shop and leave mainland China.
The new TikTok guidelines will have an impact on legal financial organizations, as they will no longer be able to use influencers to promote their products.
Without the option to pay influencers or TikTok for advertising, cryptocurrency’s time on the platform may be coming to an end. However, the company’s advertising policy remains unaltered, allowing financial services companies to advertise to consumers above the age of 18.
To expand their reach, many crypto-trading companies hire TikTok influencers, sometimes known as “Fintok” consultants. As a result, some of them may provide false and uncontrolled financial advice regarding investing in assets such as Bitcoin and Dogecoin to young and naive investors who want to increase their money quickly but lack a thorough grasp of the market.
Google has taken a similar attitude.
Google, like TikTok, has taken a firm position against scam advertisements on its site. Google UK announced a few weeks ago that beginning in September, the company will require financial services companies to verify their identities in order to combat scam adverts on its platform.
Meanwhile, China’s assault on cryptocurrencies has intensified, with authorities in Anhui province recently prohibiting trade in the highly volatile digital coins in order to reduce power use. The action began in late May, with key mining hubs like as Sichuan, Inner Mongolia, and Xinjiang at the forefront, resulting in a significant drop in the crypto market. China was responsible for nearly 70% of worldwide Bitcoin manufacturing prior to the crackdown.