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TikTok bans promotion of cryptocurrencies in videos

TikTok bans promotion of cryptocurrencies in videos

China’s video-sharing app TikTok has updated its brand content guidelines to prohibit all financial services and products, including influencers, from promoting cryptocurrency, stock trading, immediate purchase, and diversified systems. The company took this step aiming to stop any platform that commits fraud, and dishonesty may infringe on someone’s privacy. They took this action a few weeks after Beijing took tough action against cryptocurrency mining operations due to “climate conditions” forcing miners to shut down and leave mainland China. The new TikTok rules will affect legitimate financial companies, which can no longer use influencers to promote themselves.

If there is no ability to pay advertising fees to influencers or TikTok, cryptocurrency may be over on the platform. However, the company’s advertising policy (allowing financial services companies to advertise to individuals 18 and older) remains unchanged.

In its updated policy, TikTok stated under the heading “Global Prohibited Industries” that all brand content that promotes financial products and services (including but not limited to loans and credit cards) is prohibited, Buy now and pay later (BNPL), platform trading, cryptocurrency, foreign exchange, currency trading, etc. After the government banned social media platforms and various requirements of Chinese companies in 2020, the policy does not apply to India, and the government confirmed that it is unchanged in 2020 this year. However, news has confirmed TikTok’s new policy.

Many cryptocurrency companies use TikTok influencers called Fintok Advisors to expand their reach. This sometimes causes some of them to provide misleading and unregulated financial advice to naive young investors who want to quickly invest and increase their funds without proper market knowledge when investing in popular assets such as Bitcoin and Dogecoin.

Like TikTok, Google has taken a strong stance on fraudulent ads on its platform. A few weeks ago, Google UK announced that starting in September, the company will require financial service providers to verify their identities in order to suppress fraudulent advertisements hosted on its platform.

At the same time, the Chinese authorities have stepped up measures to crack down on cryptocurrencies. Recently, the authorities have banned the trading of highly volatile digital currencies in Anhui Province in order to reduce energy consumption to an acceptable level. Mining centers such as Sichuan, Inner Mongolia, and Xinjiang have caused the cryptocurrency market to collapse. Before the crackdown, approximately 70% of global Bitcoin production was in China.

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About the author

Tina Hayden

Tina is a freelance writer based in Maine. She earned her bachelor’s in journalism at Temple University. She has written several high-level documentations for local magazine. She loves to travel and vlog her vacations when she is not writing. [email protected]

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