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- TikTok said on Friday that certain types of ads will no longer be allowed on their platform. Crypto-based commercial material is now forbidden, according to an article published on July 8 by FT Adviser.
- TikTok was a hotbed for Dogecoin (DOGE) enthusiasm in 2020, with users posting relevant videos in a bid to get more people to join.
- According to Martin Bamford, client education head at Informed Choice, [TikTok] is cracking down on directly or indirectly sponsored material that leads to an affiliate link, such as to sign up for a trading platform and win free stocks
On Friday, TikTok stated that certain forms of advertisements will no longer be permitted on their site. According to an article published on July 8 by FT Adviser, crypto-based advertising content is now prohibited. Regardless of the poster’s physical location, the new restrictions on the social video uploading site will expressly prohibit users from publishing promotional content regarding financial goods.
The advertising of all financial services and products is now worldwide forbidden, according to TikTok’s sponsored content policy, according to the FT Adviser article. In 2020, TikTok was a hotspot for Dogecoin (DOGE) excitement, with users sharing relevant videos in an attempt to persuade more people to come on board. In recent months, several social media platforms have featured noteworthy financial markets debates, with stock discussions on Reddit becoming increasingly popular.
Martin Bamford, client education head at Informed Choice, told FT Adviser, that his understanding of this is [TikTok] is cracking down on directly or indirectly sponsored material that leads to an affiliate link, for example, to join up to a trading platform and earn free stocks.
On TikTok, we see a lot of this sponsored material, generally from uninformed commentators who entice followers with promises of riches but make their money off individuals joining up via affiliate links. It’s unclear if TikTok’s prohibition covers all financial product talks or just those that are purely promotional. In 2018, Google prohibited crypto ads, however, part of that restriction was lifted this year for select businesses, subject to specific conditions.
For some, the possibility to promote on TikTok remains an option, as the true issue is with the influencers. For promoting certain cryptocurrencies, exchanges, apps, or other connected goods, influencers are typically paid a fixed fee or commission. Financial services firms are allowed to advertise to targeted users above the age of 18 under the ad policy.
Ads promoting digital assets and cryptos, on the other hand, are already forbidden from being purchased on the platform. Because many crypto-related businesses rely on TikTok influencers, sometimes known as Fintok advisers, to expand their worldwide reach, these new regulations will have a significant impact on how the sector advertises itself. Without the option to pay influencers or TikTok for advertising, cryptocurrency’s time on the platform may come to an end.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
