TikTok, the leading social media platform, has banned all promotions of crypto investment advertisements and promotions on its platform.
The ban applies to all financial services and products globally due to concerns over misleading financial information.
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According to the TikTok branded content policy, the ban includes, but not limited, to:
- Lending and management of money assets
- Cryptocurrency
- Foreign exchange
- Pyramid schemes
- Investment services
- Get-rich quick schemes
among others.
TikTok is popular for a huge amount of finance branded content that lures followers with promises of riches, usually from poorly informed commentators who make money off people signing up via affiliate links.
TikTok is also notorious for being a hotbed of crypto shilling, especially the DogeCoin hype, and pump and dump activities for crypto assets.
In June 2021, TikTok teamed up with Citizens Advice, to create a video series about financial literacy to help users make informed decisios and understand financial jargon.
According to Jessica Abelscroft, Director of Communications and Engagement, Citizens Advice:
“At Citizens Advice we offer free, confidential and impartial advice to millions of people every year – whoever they are and whatever their problem.
“We’re pleased to be working with TikTok to help people make informed financial decisions. It’s an important part of our wider financial and scams awareness work, as well as reaching new audiences on TikTok who we know could benefit from timely, practical and tactical advice.”
– Director of Communications and Engagement, Citizens Advice
The education campaign comes after the Financial Conduct Authority (FCA) voiced concerns over young people looking for investments online.
A recent survey by the FCA also found that while 78% of adults have heard of cryptocurrencies, up from 73% in 2020, the overall understanding of cryptocurrencies has declined.
The survey also found that consumers likely to be persuaded by adverts are more likely to regret their purchase.
The TikoTok ban comes after other tech giants, Google and Facebook, similarly clamped down on crypto advertisements due to increased scam activity.
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RECOMMENDED READING: Several High Profile Figures, Celebrities Were Among AfriCrypt Scam Investors, One of the Biggest Financial Scandals in South Africa
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