TikTok has placed a ban on publishing sponsored content related to finance including investment services and cryptocurrencies by creators on its platform.
As detailed in their updated ‘branded content policy,’ the social media platform has placed a ban on the promotion of globally prohibited industries like alcohol, weapons, and gambling, which includes financial services.
“All financial services and products are prohibited, including but not limited to lending and management of money assets, loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, debit and pre-payment cards, forex trading, commemorative coins, pyramid schemes (including non-financial services), investment services, credit repair services, bail bonds, debt assistance programmes, get rich quick schemes, debt consolidation services and penny auctions.”
TikTok’s ban comes as financial regulators warn investors to watch out for fraudulent investing advice and information. The hashtag “#investing” has also amassed over 2.8 billion views on the app as many people flock to the platform to learn about the stock market.
Errol Coleman, a TikTok financial content creator with 264,000 followers, said the recent news that a large esports organization was promoting a token that could have been a scam on social media may have forced TikTok to tighten its policies. “There are many accounts now promoting questionable cryptos and other investments,” he added. “I believe that is where TikTok is seeing the issue.”
The ban appears to be a good measure as the social media giant says it’s all designed to ensure a safe and positive environment for TikTok users. This being the case, however, the ban appears to only apply to sponsored content, not general videos discussing cryptocurrencies and investments.