Social network TikTok has updated its branded content policy to ban cryptocurrency-related ads. In recent months, the application has notably been the scene of a frantic promotion for Dogecoin (DOGE).
TikTok bans crypto-related ads
TikTok has banned influencers from promoting any form of financial service on its platform. This ban applies to advertisements for financial services, credit cards, and anything related to cryptocurrency investments.
According to the FT Adviser media: “Under TikTok’s branded content policy, the promotion of all financial products and services is now generally prohibited. “
The new restrictions will prevent users from posting promotional content, regardless of their location. However, the restrictions could only apply to sponsored content featuring an affiliate link. As a result, interpretations of TikTok’s new branding policy diverge.
In 2018, Google and Facebook banned cryptocurrency ads on all of their platforms. However, the two companies have only recently adjusted this policy.
What is the context?
This ban follows the complaint of the British financial policeman about the negative influence of TikTok on young investors, causing them to take too many risks.
According to a report released in February by the UK’s Financial Conduct Authority (FCA), TikTok has been used to target “young and naïve” investors looking to make a quick buck. Many influencers suggested that people invest heavily in stocks like GameStop and cryptocurrencies like Dogecoin (DOGE). Indeed, TikTok has been the scene of an inevitable frenzy for the DOGE in recent months.
TikTok, alongside Citizens Advice, launched educational finance videos in June. The videos focused on how to do your own research to make informed financial decisions. The goal of this partnership was to educate TikTok users on the correct financial information, help them recognize wrong information, and give them access to the proper support and advice.