TikTok’s cryptocurrency Ban explained
What exactly does TikTok’s cryptocurrency ban imply? Why is TikTok attempting to distance itself from cryptocurrency content promoted on its platform? This article explains TikTok’s anti-cryptocurrency content policies.
TikTok has made it illegal for creators to post content about cryptocurrency. Companies looking to promote cryptocurrency through advertising on the short-form video platform are now subject to additional restrictions. This decision will leave a long-term impact on both creators and crypto communities.
TikTok, a modern-day social networking platform, is extremely popular among the Gen Z crowd, even though it requires no introduction. ByteDance, a Chinese multinational internet technology company based in Beijing, owns TikTok.
TikTok has more than 1.1 billion monthly active users worldwide, according to estimates. TikTok has quickly risen to become one of the world’s few short-form content platforms where independent creators have made a name for themselves.
What does the TikTok crypto ban mean?
TikTok’s branded content policy was recently updated, and it was harsh on cryptocurrency. But hold on a second. The platform continues to prohibit not only cryptocurrency-related content but also other types of content.
The company has also placed restrictions on uploading user-generated content and displaying advertisements for other FinTech products and services such as buy now pay later (BNPL), foreign exchange, debit, and pre-payment cards.
TikTok’s updated branded content policy on promoting “financial services and products” is as follows.
“All financial services and products are prohibited, including but not limited to lending and asset management, loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, debit and pre-payment cards, forex trading, commemorative coins, pyramid schemes (including non-financial services), investment services, credit repair services, bail services, and bail bonds,” according to the law.
Why is crypto content prohibited on TikTok?
TikTok has also imposed influencer content restrictions on other financial services and products, in addition to crypto. Other financial services, except cryptocurrency, are allowed to target users over 18 under TikTok’s advertising policy. As a result, the question arises: why are only crypto-related ads banned on TikTok?
One of the significant reasons is regulatory pressure on TikTok. The UK’s Financial Conduct Authority (FCA) has previously issued warnings to TikTok about a rise in fraudulent loan schemes and crypto-investment content shared.
In the past, the app has played a role in amplifying pump-and-dump cryptocurrency scams.
Is the crypto ban on TikTok a good sign?
The cryptocurrency community remains optimistic that TikTok’s crypto ban will help clean up the crowded content space. It should aid TikTok in keeping unqualified content creators at bay and preventing the widespread distribution of misleading content.
In terms of crypto advertisements, there is no guarantee that they will remain banned on TikTok indefinitely. Google has finally decided to allow crypto exchange and wallet operators to advertise their products and services on its network after nearly three years. TikTok is likely to follow Google’s lead and allow crypto exchanges and wallet services to advertise on its platform as it matures into a more healthy, honest, and mature video-sharing platform.
However, it’s worth noting that TikTok’s policy change incorporating crypto content restrictions comes just weeks after China’s anti-crypto crackdown measures doubled.