TikTok Is Banning Influencers From Selling Cryptocurrencies
TikTok updated its branded content guidelines this week and the social media giant is stopping crypto influencers. The policy could have an impact on creators whose content is based on the crypto and broader financial landscape.
The policy change
While the policy change provides for some exceptions, the newly banned content group is “Financial Services and Products”. This category includes topics such as crypto, loans and credit cards, trading platforms, forex trading, commemorative coins, securities services and more, among others.
However, TikTok’s advertising policy remains the same that currently allows financial services companies to advertise to anyone over the age of 18. Nevertheless, advertising specifically for cryptos and digital assets is already prohibited on the platform.
Despite all the real regulatory tools, however, TikTok has emerged as an emerging financial intelligence tool for young consumers. The platform’s financial corner, referred to as “FinTok” or “StockTok”, is a massive mix of speculation, exaggeration, and actual financial insights or prospects.
As an extension of this, TikTok has recently been heavily scrutinized to allow unregulated financial advice across the platform.
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A sign of the times?
Crypto shillings are certainly not uncommon on social media channels these days, and TikTok is no exception. A current example is the “Save The Kids” token, which is praised by well-known influencers in the FaZe clan. There is a lot of speculation as to whether popular influencers who pushed the token will face legal ramifications.
When it comes to TikTok, audiences tend to be much younger too, with the platform primarily targeting a Gen Z audience and young millennial audiences. This only encourages verification for the company.
Of course, the crypto demographics are generally viewed as a younger audience, which makes TikTok a viable medium for creating and consuming crypto content. In a statement to media company FT Adviser, Informed Choice’s customer education director Martin Bamford said he saw the policy change as “interfering with directly or indirectly sponsored content that leads to an affiliate link and receiving free shares.”
Accordingly, the impact of TikTok’s recent policy change could likely affect more than just bad players in the crypto space. Legitimate financial firms are likely to be affected and will no longer be able to use influencers through TikTok in the same way they currently do.
The enduring strength of the broader crypto is arguably due in part to the emergence of crypto conversations on a variety of social platforms like TikTok. | Source: CRYPTOCAP on TradingView.com
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Selected image from Pixabay, charts from TradingView.com