TikTok Places Ban on Ads Promoting Crypto and Other Financial Investments

TikTok bans crypto-related promotional materials. Releases videos to help users make informed financial decisions.

TikTok moves to block crypto ads, a report by FT Adviser has said. According to the brand’s updated policy, the marketing of financial services and products on the platform is now verboten. Services such as money assets management, cryptocurrency, foreign exchange, network marketing schemes, investment opportunities, and get-rich-quick schemes, among others, were all implicated in the ban.

This ban follows from the complaint of the Financial Conduct Authority about the negative influence of social media on young investors, leading them to shoulder too much risk.

With internet fraud at an all-time high because of the COVID-19 lockdown, Google and other internet giants were advised to take action over scam advertisements that appear on their platforms.

Crypto Ads Ban: Welcome Development?

Back in 2020, TikTok was used to generate a buzz for Dogecoin (DOGE). Much of this came from uninformed commentators whose actual interest was to make money off unsuspecting people signing up with their affiliate links.

This will not be the first time a company would move against cryptocurrency promotional material. In 2018, Google banned crypto advertisements across its platforms. The company only recently adjusted that policy. Interpreting the ban, Head of Client Education at Informed Choice, Martin Bamford, believes the clampdown is targeted at sponsored content with an affiliate link to sign up for a financial service like trading on the stock exchange.

Bamford, however, noted that the announcement was general and would also affect regulated firms and individuals. He expressed optimism that there will be a further review in that regard. “Accurate financial knowledge would equip people against tricksters and potential scammers,” he noted. This would not be available with a blanket policy that affects regulated firms as well.

TikTok, alongside Citizens Advice, rolled out financial educational videos in June. The videos focused on how to leverage research and technology to make informed financial decisions. The goal of the partnership was to expose TikTok users to the right financial information, aid their recognition of wrong information and provide access to the right support and advice.

Google, in its own case, mandated all financial services advertisers to show authorization by the FCA before approving their adverts. The government likewise proposed a new Online Safety Bill. This, however, didn’t include fraud via advertising, emails, or cloned websites.

According to the government, it would consult on regulating online advertising regulation later in the year.

next Cryptocurrency news, News, Social Media, Technology News

An experienced writer and Fintech enthusiast, passionate about helping people take charge of, scale and secure their finances. Has ample experience creating content across a host of niche. When not writing, he spends his time reading, researching or teaching.

Related Articles

KuCoin Launches ZKT’s World Premiere and Takes Part in zkTube Layer2 Mining

zkTube is the world’s first Layer 2 mining protocol based on ZK-Rollup technology. Starting from 2020, in Melbourne-Australia, the company has achieved several significant...

Buying Your First Crypto? 10 Things You Should Know

Between dogecoin’s cameos on U.S. television and bitcoin’s growing acceptance on Wall Street, cryptocurrency is reaching a wider audience than ever before. Skyrocketing prices...

Weekly and 4 Hr Chart Analyses Reveals Buy Signal for Polygon

Polygon recently set a new record for highest bounty paid in DeFi. The team at Polygon paid a two million US dollar worth of...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

KuCoin Launches ZKT’s World Premiere and Takes Part in zkTube Layer2 Mining

zkTube is the world’s first Layer 2 mining protocol based on ZK-Rollup technology. Starting from 2020, in Melbourne-Australia, the company has achieved several significant...

Buying Your First Crypto? 10 Things You Should Know

Between dogecoin’s cameos on U.S. television and bitcoin’s growing acceptance on Wall Street, cryptocurrency is reaching a wider audience than ever before. Skyrocketing prices...

Weekly and 4 Hr Chart Analyses Reveals Buy Signal for Polygon

Polygon recently set a new record for highest bounty paid in DeFi. The team at Polygon paid a two million US dollar worth of...

New Ethereum-to-Cardano Bridge Will Provide NFT Creators Eco-friendly Options

Bondly has announced a new functionality on the Cardano blockchain that is aimed at creators. Energy consumption has been a major problem on the...

Near Protocol Offers $800M in Grants in Bid for DeFi Mindshare

While the Fantom, Harmony, Avalanche and Celo blockchains have all launched nine-figure ecosystem development funds, Near may be setting a new high-water mark with...