Social media giant TikTok would no longer allow its platform to be used in the promotion of various financial services products, including investments and cryptocurrencies.
The popular app updated its branded content policy and set strict regulations that disallow users from advertising cryptocurrencies and other financial services. TikTok noted on its support page that:
All financial services and products are prohibited, including but not limited to lending and management of money assets, loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, debit and pre-payment cards, forex trading, […] get rich quick schemes, debt consolidation services and penny auctions.
The move follows growing concerns over the accuracy and trustworthiness of financial ads posted on TikTok. The platform had come under scrutiny for permitting unchecked financial counsel that could lead young investors astray.
While this may seem like a clampdown on cryptocurrencies due to China’s latest anti-crypto drive, the ban aims to prevent the promotion of high-risk investments and bogus schemes circulating on the app. In the crypto space, for instance, DeFi protocol WhaleFarm left many investors stranded after carting away with over $2 million in an apparent rug pull. Sadly, several reputable financial organizations will have to suffer the backlash of the decision.