Popular Chinese short video service TikTok has updated its user-generated content policy. The platform have started placing ban on some financial services and products, such as bloggers advertising cryptocurrencies, asset trading and other financial schemes.
According to the admin of the service, the move was to curb the fraudulent activities which seems to be increasing seriously.
TikTok Bans Crypto Ads On Its Platform
The restrictions crypto ads took place shortly after the Chinese government imposed a complete ban on cryptocurrency mining throughout the country. TikTokâ€™s new measures will have a direct impact on bona fide financial institutions that have previously promoted their services through the site.
The updated text of TikTokâ€™s advertising policy talks about a complete global ban on branded promotion of financial services and products, including but not limited to loans, credit cards, installment services, trading platforms, cryptocurrencies, foreign exchange exchangers and others.
Until now, many companies specializing in cryptocurrency trading have been cooperating with influencers on the platform, such bloggers were called â€œFintok advisorsâ€. They published recommendations for investing in cryptocurrency assets like Bitcoin and Dogecoin, and young and naive users of the social network, in their quest to get rich quickly, took such recommendations for action, without trying to figure out the nuances. As a result, such stories mostly ends in tragedy.