TikTok prohibits influencers from promoting cryptocurrency such as Bitcoin and Dogecoin on its platform.

 TikTok, a Chinese-owned video-sharing app, has revised its sponsored content policy to prohibit influencers from pushing cryptocurrencies, share trading, and buy-now-pay-later schemes. According to the firm, the move is intended to prevent the growing misuse of the massively popular social networking platform to perpetrate frauds, scams, and dishonest behavior that may infringe on someone's privacy. However, it comes only weeks after Beijing cracked down on bitcoin mining activities due to "environment concerns," prompting miners to close business and leave mainland China. TikTok's new restrictions will have an impact on legal financial businesses since they will no longer be allowed to promote themselves through influencers.

Without the option to pay influencers or TikTok for advertising, cryptocurrency's time on the platform may be coming to an end. The company's advertising policy, however, which enables financial services businesses to advertise to anyone above the age of 18, remains unaltered.

TikTok's revised cryptocurrency policy

TikTok stated under the heading “Globally Prohibited Industries” in the updated policy that all branded content promoting financial services and products, including but not limited to loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, forex trading, and so on, are prohibited. The policy is no longer available from India since the government banned the social networking platform, as well as numerous applications from Chinese businesses, in 2020, which the government announced in January this year was a permanent ban. However, sources have verified TikTok's new stance.

Many crypto-trading businesses utilize TikTok influencers known as “Fintok” advisers to expand their reach. As a result, some of them may provide false and uncontrolled financial advice regarding investing in assets such as Bitcoin and Dogecoin to young and inexperienced investors who want to increase their money rapidly but lack a thorough understanding of the market.

Google has taken a similar position.

Google, like TikTok, has taken a firm position against fraudulent ads on its platform. Google UK announced a few weeks ago that beginning in September, the firm will require financial services companies to authenticate their identities to combat fraudulent ads placed on its platform.

Meanwhile, the Chinese government has tightened its grip on cryptocurrencies, recently prohibiting trade in the highly volatile digital currency in Anhui province to reduce power usage to a reasonable level. The action began in late May, starting with key mining centers like Sichuan, Inner Mongolia, and Xinjiang, resulting in a significant collapse in the cryptocurrency market. Before the crackdown, China was responsible for about 70% of worldwide Bitcoin manufacturing.

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