Crypto influencers are no longer allowed to promote crypto projects on TikTok after the popular social network published new guidelines on Friday.
TikTok bans crypto ads
In updating its branded content policy, TikTok noted that all of the following forms of financial services and products are now banned from the social media platform: cryptocurrencies, trading platforms, pyramid schemes, “get rich quick” programs, credit cards, loans, and a few other some .
Recent reports suggest that most of the victims of these high-risk investments and the get-rich-quick programs advertised on TikTok are young, and the UK’s Financial Conduct Authority (FCA) recently expressed concern over the worrying trend.
Curbing Financial Fraud
TikTok claims the move is designed to end the increasing rate of crypto-related and other investment scams and programs advertised on the social network. However, the total ban also affects legitimate finance-related companies that use the platform to promote their products.
The social media app became a preferred platform for promoting meme-inspired cryptocurrencies after the Dogecoin hype in 2020.
As reported at the time, DOGE rose over 100% in a matter of days after being promoted on TikTok by an influencer who urged followers to buy the coin “because it was worthless”.
After the impressive performance, other Dogecoin copycats started paying TikTok influencers to promote their projects in hopes of generating a similar hype effect from DOGE.
Not the first social network
Meanwhile, TikTok isn’t the first social media platform to ban crypto advertising. In 2018, during the ICO frenzy, Facebook banned all ads promoting cryptocurrency services and products. Although the social media giant later lifted the ban on some crypto ads in the same year, censorship of bitcoin content was observed again in 2020.
Google also banned crypto advertising in 2018, but has allowed crypto wallets and exchanges to display advertising on its platform since last month.
However, crypto and financial companies are expected to meet some requirements, such as: For example, registering with FinCEN (Financial Crimes Enforcement Network) and complying with other Google Ads guidelines before they can advertise their products on the world’s largest search engine.
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