After the popular social network issued new limits on Friday, crypto influencers will no longer be able to promote crypto projects on TikTok.
TikTok has banned cryptocurrency advertisements. In an update to its Brand Content Policy, TikTok stated that all sorts of financial services and goods, including cryptocurrencies, trading platforms, pyramid schemes, “get rich quick” schemes, credit cards, loans, and others, are now prohibited on the social media platform.
According to recent studies, young people are the most common victims of high-risk investments and get-rich-quick schemes advertised on TikTok, and the UK Financial Conduct Authority (FCA) recently expressed concern about the worrying trend.
Defending Against Financial Scams The change, according to TikTok, is intended to combat the rising number of crypto-related and other investment scams and schemes advertised on the social media platform. On the other hand, outright prohibition will damage genuine financial-related businesses that use the platform to promote their goods.
Following the Dogecoin boom in 2020, the social networking app became a favorite medium for promoting meme-inspired cryptocurrency.
DOGE soared by over 100 percent in a matter of days after it was promoted on TikTok by an influencer who advised his followers to acquire the coin “because it was worthless,” according to reports at the time.
Following DOGE’s astounding performance, other Dogecoin clones began paying TikTok celebrities to promote their projects in the hopes of replicating DOGE’s hype impact.
This is not the first social networking site. In the meanwhile, TikTok isn’t the first social media network to prohibit cryptocurrency advertisements. During the ICO boom in 2018, Facebook prohibited any ads advertising cryptocurrency services and products. Although Facebook later reversed the prohibition on some crypto adverts that same year, it was detected restricting bitcoin-related content again in 2020.
In 2018, Google likewise banned crypto advertisements, but this month began allowing crypto wallets and exchanges to broadcast ads on its platform.
Before they may market their products on the world’s largest search engine, however, crypto-related and financial enterprises must meet certain standards, such as registering with FinCEN (Financial Crimes Enforcement Network) and adhering to other Google Ads policies.