TikTok bans influencers from promoting cryptocurrencies like Bitcoin, Dogecoin, on its platform

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Chinese video-sharing app TikTok updated its branded content policy to ban all financial services and products, including influencers, from promoting cryptocurrency, stock trading, and programs. immediate purchase and subsequent payment. The move, the company says, is aimed at ending the growing misuse of the hugely popular social media platform to commit frauds, scams and dishonest behavior that could invade someone’s privacy. . But it came just weeks after Beijing cracked down on cryptocurrency mining operations for climatic reasons, forcing miners to close shop and leave mainland China. TikTok’s new rules will hit legitimate financial companies, which will no longer be able to use influencers for promotion.

Without the ability to pay influencers or TikTok for advertising, cryptocurrency’s time on the platform might be over. However, the company’s advertising policy, which allows financial services companies to advertise to people over the age of 18, remains unchanged.

Updated Cryptocurrency Policy from TikTok

In the updated policy, TikTok has stated under the heading Globally Banned Industries that all branded content promoting financial products and services is prohibited, including, but not limited to loans and credit cards, buy now, pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, forex trading, and so on. The policy is not accessible from India after the government banned the social media platform in 2020, as well as several apps from Chinese companies, which the government confirmed in January this year was a ban permed. However, reports have confirmed TikTok’s new policy.

Many crypto-trading companies use influencers on TikTok, known as Fintok Advisors, to expand their reach. Sometimes some of them give deceptive, unregulated financial advice on investing in assets like Bitcoin and Dogecoin to naïve young investors who, without a good understanding of the market, want their money to grow quickly.

Similar position of Google

Like TikTok, even Google has taken a tough stance on fraudulent ads on its platform. A few weeks ago, Google UK said that from September the company would ask financial service providers to verify their identity in order to crack down on fraudulent ads hosted on its platform.

Meanwhile, Chinese authorities have extended their crackdown on cryptocurrencies, with authorities recently banning trading in highly volatile digital coins in Anhui province to reduce energy consumption to a manageable level. The action did indeed begin in late May, starting with major mining centers like Sichuan, Inner Mongolia and Xinjiang, leading to a massive collapse in the crypto market. Before the crackdown, China accounted for around 70% of global Bitcoin production.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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