TikTok to Halt Ads Promoting Cryptocurrencies
Popular social media platform, TitTok, has taken a hard line against advertisements promoting cryptocurrencies and investment schemes. This comes as the short-video making platform tries to protect its users of the application, who are mostly young and have little or no knowledge about cryptocurrencies. Its latest decision may be the fallout of the UK’s Advertising Standard Authority, which has gone ahead to place a red alert on cryptocurrencies.
TitTok has updated its extant policy to include the latest crypto ads ban. With this ban, advertisements on loans, cryptocurrencies, forex, investment products, referral schemes and quick money schemes are now prohibited. Following the global acceptance of cryptocurrency, the short-video platform issued a warning to users to be wary of crypto influencers and enthusiasts giving financial advice. TitTok expressed concerns about investment advice which young people on the platform were being given by influencers, thereby taking advantage of their naivety.
TikTok Releases Videos in June to Teach Users
In June, the Chinese-owned platform partnered with another firm to release videos teaching people on how to make better financial choices. In view of that, TitTok said it wanted to spread awareness regarding misleading financial advice and assist the platform’s users to make concrete and informed choices.
While commenting on TitTok’s new policy on crypto marketing activities, Informed Choice’s head of client education, Martin Bamford said that the social media platform is taking a hard line against sponsored ads promoting referral links, inducing users to register on crypto exchanges or stock trading platforms and get registration bonus. Martin acknowledged that contents like the above are now rife on TikTok, with popular influencers inducing their fans with the promise of profits, when actually they plan to make money off them through their referral IDs.
Google And Facebook Review Ads Policy
As crypto frauds increase, TikTok’s latest ban adds it to the list of notable platforms which have toughened their stance against ads promoting high-risk investment schemes. Earlier in June, Google updated its policies on crypto ads and promotions to accommodate its new stance on cryptocurrency ads by exchanges and crypto wallet firms. It had issued a ban on crypto-related ads in 2017 until this year when it reversed the ban.
However, Google attached some stringent conditions to the new policy which would take effect by August. Crypto exchanges issued certification by Google would have to reapply by August. Also, the new policy excludes certain ads, which include cryptocurrency, pre-sales, ads promoting decentralized protocols, initial coin offerings (ICOs) and the purchase of crypto coins and tokens.
The new policy disallows ads based on initial decentralized exchange offerings (IDOs), celebrity tokens and unlicensed decentralized applications, trading signals, affiliate sites, investment or financial advice. According to Google, every institution that plans to promote ads on its platform must be registered and recognized by the US Financial Crimes Enforcement Network or any federal or state body. Facebook also reviewed its ads policy to accommodate specific crypto ads earlier this year.
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