TikTok Bans Investment Promotions Including Cryptocurrency Ads
Popular China-based social media app TikTok, with an estimated 1 billion monthly active users, has updated its branded content policy to put a global ban on touting financial services, including cryptocurrencies.
Besides cryptos, this ban also covers but is not limited to Forex companies loans, credit cards, pyramid schemes, investment services, get rich quick schemes, management of money assets, and buy now pay later companies.
The social media giant’s ad policy stated that financial services are allowed to advertise to users over the age of 18. However, ads for cryptocurrencies are prohibited from the platform.
This move is aimed at putting a stop to the promotion of high-risk investments on social media.
In February, UK’s Financial Conduct Authority (FCA) released a report that said that TikTok had been used to target young investors looking to make a quick buck.
“The findings reveal there is a new, younger, more diverse group of consumers getting involved in higher-risk investments, potentially prompted in part by the accessibility offered by new investment apps,” reads the report.
Last month, TikTok also teamed up with Citizens Advice to roll out videos talking about making informed financial decisions. At the time, the company said, it wanted to help users become confident and alert to financial misinformation.