Posted 11 months ago | by Catoshi Nakamoto

Tiktok has banned its users from promoting all financial products and services including crypto digital assets.

AdobeStock 346604631 Editorial Use Only TikTok Short Video Platform Bans Its Users From Promoting Cryptocurrencies And Financial Services

Popular social media platform Tiktok has banned user content promoting cryptocurrencies as well as all financial products and services. The company’s “Branded Content Policy” now states the following in its terms.

“All financial services and products are prohibited, including but not limited to … cryptocurrency.”

In addition to crypto digital assets, other forbidden products and services listed include — lending and management of money assets, loans and credit cards, trading platforms, foreign exchange platforms, pyramid schemes (MLMs), and the blanketed term “investment services.”

Under Tiktok’s advertising policies, the company also prohibits ads related to cryptocurrency. In most countries, including the U.S. and the U.K., Tiktok bans “Ads promoting virtual currencies/cryptocurrencies (e.g. Bitcoin and Ethereum), as well as cryptocurrency trading platforms and advisory services are prohibited.”

According to the Financial Times, Tiktok’s move comes after its users were warned about taking financial information from Tiktok over concerns it could be misleading and hurt younger investors who are more naive. TikTok has been used to pump cryptocurrencies like Dogecoin, Safemoon, and more recently Shiba Inu in the last few months.

Martin Bamford, head of client education at Informed Choice, told the Financial Times: “My interpretation of this is [TikTok] are clamping down on directly or indirectly sponsored content which leads to an affiliate link, for example, to sign up to a trading platform and get free stocks.

“We see a huge amount of this branded content on TikTok, usually from poorly informed commentators, who lure in followers with promises of riches, but in reality are making their money off people signing up via affiliate links.”

He added: “I don’t yet know what the implications of the new rules will be for regulated firms and individuals, but it does seem to sweep them up too.

“Hopefully there is still a place for informed financial education on the platform, as this is the single best way to combat the scammer and charlatans.”

However, TikTok has not banned users from doing TA or Technical Analysis of digital assets or stocks. As per, crypto media outlet Decrypt, “this means that unpaid shilling is still good to go.” In other words, what TikTok did is now made it so users can’t use the #AD tag or be paid for a promotional video on their platform. However, what this encourages now is unpaid undisclosed shillings of crypto which is illegal and against SEC regulations. But that won’t stop some influencers from breaking the law just to make a paycheck to live.

This comes as both the European Union and the U.S. are discussing regulations as Bitboy Crypto has been reporting. With TikTok banning cryptocurrency promotions, there are other alternatives like SoMee and Hyprr looking to take advantage of this. Then there’s Facebook’s Instagram which hasn’t yet banned cryptocurrency promotions on its own platform.

Bitcoin is currently trading at [FIAT: $33,797.19] UP +0.7% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g TikTok Short Video Platform Bans Its Users From Promoting Cryptocurrencies And Financial ServicesActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.