Cryptocurrency

TikTok’s policy update, influencers will not be able to promote cryptocurrency on the app

The new rules could also affect legitimate financial firms, which will no longer be able to use influencers to promote their products.

Chinese video-sharing app TikTok has updated its branded content policy to ban all financial services and products, including influencers promoting cryptocurrencies, share trading, and buy-now-pay-later (buy-). now-pay-later). The company says the move is aimed at curbing the growing misuse of the popular social media platform to engage in fraud, scams and dishonest behavior that may violate one’s privacy. But miners were forced to close up shop and move out of mainland China just weeks after Beijing cracked down on cryptocurrency mining operations over “environmental concerns”. TikTok’s new rules will affect legitimate financial firms, which will no longer be able to use influencers for promotion.

Without the ability to pay influencers or TikTok for advertising, cryptocurrencies on the platform may expire. However, the company’s advertising policy that allows financial services companies to advertise to people over the age of 18 remains unchanged.

TikTok’s updated policy about cryptocurrency

In the updated policy, TikTok said under the heading “Globally Prohibited Industry” that all branded content promoting financial services and products is prohibited, including loans and credit cards. But now includes Buy Now and Pay Later (BNPL) services, trading platforms, cryptocurrency forex, forex trading, and more. This comes from India after the government banned this social media platform in 2020 along with several apps from Chinese companies. Policy is not accessible. Which was confirmed by the government in January this year. It was a permanent ban. Although Reports Has confirmed the new policy of TikTok.

Many crypto-trading companies use influencers on TikTok, known as “Fintok” advisors, to expand their reach. Sometimes this results in some of them giving misleading and unregulated financial advice about investing in assets like bitcoin and dodgecoin to young and gullible investors who want to grow their money quickly, without a proper understanding of the market.

Similar stance by Google

Like TikTok, Google also took a tough stand on scam ads on its platform. A few weeks ago, Google UK said that the company would ask financial service providers to verify their identities from September in order to block scam ads hosted on its platform.

Meanwhile, Chinese authorities have expanded their crackdown on cryptocurrencies and the authorities recently banned the trading of highly volatile digital coins in Anhui province to bring electricity consumption down to manageable levels. The action effectively began in late May. Which began with major mining centers such as Sichuan, Inner Mongolia and Xinjiang. This resulted in a huge drop in the crypto market. Before this action, China bitcoin production used to be a shareholder of about 70 percent.

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