Crypto influencers will no longer be allowed to promote crypto projects on TikTok after the popular social network released new guidelines. The social media app became a preferred platform for promoting meme-inspired cryptocurrencies after the Dogecoin (DOGE) hype in late-2020.
TikTok claims the move is to end the increasing crypto-related scams and other investment schemes promoted on the social network. However, an outright ban would, unfortunately, affect legitimate financial-related firms that use the platform to promote their products.
The financial corner of the platform, dubbed FinTok, or StockTok, is an eclectic blend of speculation and exaggeration among financial insights and perspectives from both professionals and crypto-influencers. However, TikTok has faced increased scrutiny lately for allowing unregulated financial advice throughout the platform.
TikTok Bans Cryptocurrency Ads & Influencers
TikTok is not the first popular social media network to ban cryptocurrency promotion on their respective platforms. However, the policy could have broad implications for creators and crypto-influencers.
Updating its Brand Content Policy, TikTok noted that the following services and products would no longer be allowed on the social media platform: cryptocurrencies, trading platforms, pyramid schemes, get rich quick pyramid schemes, credit cards, and loans.
According to recent reports, most of the victims of these high-risk investment schemes promoted on TikTok are young people. The United Kingdom Financial Conduct Authority (FCA) recently could be heard voicing their concern over the worrying trend.
A Brief History of TikTok & the DOGE
In late-2020, the social media app became a preferred platform for promoting meme-inspired cryptocurrencies after the Dogecoin (DOGE) hype. As reported at the time, DOGE surged by over 100% within a few days after its promotion on TikTok.
“Because it was worthless.” a TikTok influencer urged his followers to buy the coin, which spurred the exponential growth. Following the impressive feat, other Dogecoin copycats began to pay TikTok influencers in exchange for promoting their projects, hoping to get similar hype attracted by DOGE.
A Brief History of Social Networks & Cryptocurrency
TikTok is not the first social media platform to ban crypto ads.
In 2018, Google placed a ban on crypto advertisements. This ban, however, was recently lifted in the past few months, when Google started allowing crypto wallets and exchanges to run ads on the platform last month.
That same year, Facebook banned all adverts promoting cryptocurrency services and products during the 2017-2018 initial-coin-offering (ICO) craze. The social media giant later reversed the ban on some of the crypto ads that same year and began censoring crypto-related content again in 2020.
It is worth noting those running crypto-promotions and adverts must meet specific requirements, like registering with the Financial Crimes Enforcement Network (FinCEN) and complying with other Google Ads policies. These steps must be complete before anybody can promote their products on the world-leading search engine.
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