A series of news about Binance stopping its operation in different countries, including Canada, surprised the public last week. Other countries such as China, Japan, and the U.K. are also tightening their crypto regulations to catch those firms that violate simple rules and regulations. Aside from Binance, Tiktok has been the talk of the town for banning cryptocurrencies. The reason behind it? Let's talk about it in this blog.
A few days ago, Tiktok banned the promotion of cryptocurrencies on the platform. In addition, any advertisement of financial products and services, as long as they are related to crypto, is prohibited on Tiktok's platform. Per the company's Branded Content Policy, "all financial services and products are prohibited, including but not limited to cryptocurrencies."
So, if you've seen advertisements encouraging you to invest in Bitcoins, Ether, or buy Axies, you won't see them anymore when you browse on Tiktok. In addition, lending and managing digital assets, credit cards, and loans related to crypto are not allowed on the platform.
For virtual currencies, cryptocurrency trading platforms and advice services are banned in most jurisdictions, including the U.S. and the U.K. Crypto consulting services, and similar offers are likewise outlawed in South Korea. The Financial Times says that Tiktok's decision was based on warnings that financial information provided by the app may be deceptive and may harm young savers.
The platforms cracking down on sponsored material that leads to an affiliate link, such as joining up to a trading platform and receiving free cryptos, is what Martin Bamford of Informed Choice thinks is responsible for Tiktok's suspension.
He noted, "We see a huge amount of this branded content on Tiktok, usually from poorly informed commentators, who lure in followers with promises of riches, but in reality are making their money off people signing up via affiliate links."
The platform sees a lot of sponsored videos and other materials posted by users and some influencers. These posts had affected the prices of cryptos, including DOGE, leading to the pumping of prices.
Tiktok is a big community to advertise right now. Since there are many people joining the platform, it would be safe to remove crypto advertisements, especially those that encourage these young generations to join something they do not know of.