Crypto Seller On Tiktok Will Be Blocked

JAKARTA – Short video platform, Tiktok officially prohibits users from promoting or discussing anything related to crypto. Not only that, but the company also prohibits ads containing cryptocurrencies.

The company mentions the prohibition in the regulation in its “Branded Content Policy”.

“All financial services and products are prohibited, which includes but is not limited to… cryptocurrencies”, wrote Tiktok as quoted by Bitcoin.com News.

Tiktok also prohibits other services that include lending and managing money, loans and credit cards, foreign exchange, trading platforms, cryptocurrencies, MLM, and investment services.

In a number of countries including the UK and the US, the Chinese short video platform also prohibits advertising related to cryptocurrencies. The latest news mentions that crypto consulting services in South Korea are also banned.

“Ads promoting virtual currencies/cryptocurrencies (e.g. bitcoin and ethereum), as well as cryptocurrency trading platforms and consulting services are prohibited”.

According to a Financial Times report, the ban on Tiktok was issued after the company warned its users not to accept financial information circulating on Tiktok videos. The company considers that this information can mislead savers or new investors from among young people.

However, Tiktok did not explain in more detail whether the ban was based on Chinese government policies or whether they actually protected their users from misleading information.

Martin Bamford, Head of Client Education at Informed Choice believes that the ban is aimed at “blocking directly or indirectly sponsored content that leads to affiliate links, e.g., (directed) to sign up for a trading platform and (the lure) get free shares".

“We see most of this branded content on Tiktok, usually from uninformed commenters, who promise their followers wealth, but in fact (they) make money from people signing up via affiliate links”, added Bamford.

A number of content creators on Tiktok have promoted certain cryptocurrencies and influenced their followers to buy those coins. Some Tiktok videos have even pumped up the prices of certain cryptocurrencies, Bitcoin.com News reports.