Service for creating and watching short videos TikTok has released updates to its rules. Now popular users, on whose account thousands and millions of subscribers, will not be able to talk about digital assets.
TikTok has become a worldwide sensation, especially after the COVID-19 pandemic hit billions of people and locked their homes. It now boasts over 1 billion monthly active users. As such, it has become an important platform for product promotion and cryptocurrency is no exception.
So, given the current popularity of the app, as well as its impact on Dogecoin (in the summer of 2020, the price of Dogecoin soared more than 100% amid viral videos on TikTok); this could bring some losses to the cryptocurrency industry.
In addition to banning the distribution of content related to digital assets, many other financial services and products, such as loans, credit cards and Forex trading, have been taboos. Limitations due to innovations in the application branded content policy. The move aims to stem the growing wave of inappropriate risky investments and fraud promoted on social media.
As Martin Bamford, head of the Informed Choice global quality assurance program for customer education, noted, popular bloggers often advertise referral programs in various investment services.
“We see a huge amount of such ads, and mostly from poorly informed commentators. They attract subscribers with promises of huge riches, but in reality they just make money on referral links”, Bamford emphasized.
However, the ban could hit reputable financial companies.
The platform has been scrutinized for providing unregulated financial advice that can mislead young investors. The Financial Conduct Authority has already warned that financially vulnerable young investors are engaging in “inappropriate” high-risk investments. It’s worth noting that TikTok has also redefined its approach to user safety. Over the next few weeks, the service will begin using the technology to automatically remove some types of inappropriate content found on upload. In addition to the removal confirmed by the platform’s security team.
Banning ads on TikTok and expert opinion
In addition to banning the distribution of content related to digital assets, the platform recently banned ads created to promote cryptocurrencies and financial services and products. The ban applies worldwide, regardless of the location of the content author. Many representatives of the cryptocurrency industry and the financial industry weren’t at all opposed to this approach of the service. For example, Holly Mackay, founder and CEO of Boring Money, a financial portal, emphasized that this will only play into the hands of real companies that are not fraudulent:
“In practice, most of the big brands are still struggling to make sense of Twitter, let alone work with the TikTok platform. So really, it should just remove those who were distributing hazardous waste for commercial gain”.
In addition, the ban, will serve to suppress crimes related to cryptocurrency.
As a reminder, back in 2018, Google banned advertising of any financial instruments in which users can lose money, including cryptocurrency products. However, in early June, the company lifted the ban. And allowed American users to display ads for cryptocurrency exchanges and wallets. Facebook, Twitter, MailChimp, LinkedIn, and Bing have also banned cryptocurrency ads in the past.