The TikTok Chinese company has amended the Branded Content Policy for its video-sharing app to restrict any financial services and goods, including influencers of cryptocurrencies promotion, share trading, and buy-now-pay-later schemes. According to the firm, the action is taken to avoid the enormously populous social media platform from becoming misused to commit fraud, scams, and misconduct which can break the privacy of someone. However, it was just weeks after Beijing split into “climate concerns” on cryptocurrency mining activities, order miners to stop up and leave China. New regulations by TikTok will impact genuine financial companies that will no longer use influencers to promote their products.
TikTok Update Policy to Restrict Influencers to Promote Cryptocurrencies
However, the advertising policy of the app remains unchanged, allowing financial services firms to advertise with persons above the age of 18.
In the revised policy, TikTok said that all of its brand content will only be limited to loan and credit cards, strictly prohibited from purchasing subsequently premium services (BNPL), trading platforms, conflict currency, foreign trade, forex trading, and more in the heading of “Global Industries Prohibited.” However, TikTok’s new policy has been confirmed by reports.
TikTok has become a hub for influencers in high demand by brands. In exchange for expressing support for a brand in their fields, the cryptocurrency industry does not hesitate to pay celebrities.
Several crypto-traders use TikTok influence to promote business, known as “Fintok” advisers. Sometimes, new and inexperienced investors, without sufficient market understanding, want to earn more money, give false and unregulated financial advice on investing in assets such as Bitcoin and other cryptocurrencies.
You may be also interested in: Apple iPhone New Design Touch Drives Users to Hopelessness