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TikTok bans crypto-related promotional materials. Releases videos to help users make informed financial decisions.
TikTok moves to block crypto ads, a report by FT Adviser has said. According to the brand’s updated policy, the marketing of financial services and products on the platform is now verboten. Services such as money assets management, cryptocurrency, foreign exchange, network marketing schemes, investment opportunities, and get-rich-quick schemes, among others, were all implicated in the ban.
This ban follows from the complaint of the Financial Conduct Authority about the negative influence of social media on young investors, leading them to shoulder too much risk.
With internet fraud at an all-time high because of the COVID-19 lockdown, Google and other internet giants were advised to take action over scam advertisements that appear on their platforms.
Crypto Ads Ban: Welcome Development?
Back in 2020, TikTok was used to generate a buzz for Dogecoin (DOGE). Much of this came from uninformed commentators whose actual interest was to make money off unsuspecting people signing up with their affiliate links.
This will not be the first time a company would move against cryptocurrency promotional material. In 2018, Google banned crypto advertisements across its platforms. The company only recently adjusted that policy. Interpreting the ban, Head of Client Education at Informed Choice, Martin Bamford, believes the clampdown is targeted at sponsored content with an affiliate link to sign up for a financial service like trading on the stock exchange.
Bamford, however, noted that the announcement was general and would also affect regulated firms and individuals. He expressed optimism that there will be a further review in that regard. “Accurate financial knowledge would equip people against tricksters and potential scammers,” he noted. This would not be available with a blanket policy that affects regulated firms as well.
TikTok, alongside Citizens Advice, rolled out financial educational videos in June. The videos focused on how to leverage research and technology to make informed financial decisions. The goal of the partnership was to expose TikTok users to the right financial information, aid their recognition of wrong information and provide access to the right support and advice.
Google, in its own case, mandated all financial services advertisers to show authorization by the FCA before approving their adverts. The government likewise proposed a new Online Safety Bill. This, however, didn’t include fraud via advertising, emails, or cloned websites.
According to the government, it would consult on regulating online advertising regulation later in the year.