New rules could also hit legalized economic firms, which will no longer be able to use influential people to push their products.
TikTok(Chinese-owned video-sharing ) app has updated its branded content policy to ban all financial services and products, including influencers from promotes cryptocurrency, share trading, and buy-now-pay-later schemes. The move, the company says, is aimed at stopping the increasing misuse of the wildly popular social media platform to commit frauds, scams, and swindling habits that may infringe upon someone’s privacy. But it has come just weeks after Beijing cracked down on cryptocurrency mining operations over “climate concerns”, forcing miners to shut shop and move out of mainland China. TikTok’s new rules will hit legitimate financial firms, which will no longer be able to use influencers for promotion.
Without the ability to pay either 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 policy, TikTok said under the heading “Globally Prohibited Industries” that all branded content promoting financial services and products are 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 forth. The policy is not accessible from India after the government banned the social media platform in 2020, along with several apps from chinese companies, which the government confirmed in January this year was a permanent . However, reports have confirmed the new policy from TikTok.
Many crypto-trading companies use influencers on TikTok, known as “Fintok” advisors, to grow their reach. Sometimes this results in some of them giving misleading and unregulated financial advice about investing in assets like dogecoin and bitcoin to young and naive investors who, without a proper understanding of the market, want to grow their money quickly.
Google took a tough stance on fraud promotions,Like TIK TOK on its platform.Couple weeks ago, Google UK had stated that from September the company will ask financial services providers to verify their identities to clamp down on fraud promotions hosted on its platform.