TikTok has updated its brand advertising policy to prohibit financial services from advertising on its platform.
This comes after its origin country, China banning all the cryptocurrency mining in the nation. The ban now includes barring influencers from promoting cryptocurrencies, trading advice, loans, etc.
TikTok Bans Ads on Financial Services
TikTok, the short-video-making platform, has gained rapid popularity within few years of launch. This led many companies to consider the platform and its overnight influencers as a source to advertise their products.
As this happens on every other social platform, not all oversee illicit advertisements’ consequences and take action. But TikTok is doing this now, against the financial services advertisements on its platform.
As per its freshly updated brand content policy, the Chinese platform bans advertising of cryptocurrency, buy-now-pay-later schemes, and share trading schemes. This is to avoid misusing the platform for illicit activities.
Cryptocurrency companies often leverage FinTok influencers (uncertified financial advisors on TikTok) to reach the masses with their products. Unfortunately, while some are legitimate, most are risky and unworthy.
These influencers cashing their popularity often venture out illogical suggestions in investing tips on various cryptocurrencies, like Bitcoin and Dogecoin, and pull unsuspicious users into the pool.
Since most such practices turn out to be scams, TikTok is now banning financial services and other similar companies from advertising their products on its platform. Under the “Globally Prohibited Industries” of its updated policy, TikTok said
“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.”
This comes after China, which solely contributes to over 70% of the world’s Bitcoin production, has banned miners from minting coins in the country. This was subjected to reduce the carbon emissions caused by Bitcoin mining.
Although, the new policy lets financial services companies advertise their products to people over the age of 18.