Full Of False Promises, Financial And Crypto Advertising Banned On TikTok

Tiktok, prohibits the use of financial and crypto advertising on its network. (photo: Olivier Bergeron/unsplash)

JAKARTA - TikTok announced on Friday, July 9 that certain types of ads will no longer be allowed on their platform. According to an article from FT Adviser on July 8, Crypto-based promotional content is among the topics that are now banned for being verbose.

The new guidelines on sites that post social videos specifically will prohibit users from posting promotional content about financial products, regardless of the geographical location of the creator. "According to TikTok's branded content policy, the promotion of all financial services and products is now prohibited globally," said FT Advisors.

TikTok was a hotbed for the Dogecoin (DOGE) hype in 2020. At that time users shared related videos in an effort to get more people to join DOGE. Other social media sites have also hosted high-profile discussions of financial markets in recent months, with stock discussions on Reddit also becoming prominent.

“My interpretation of this is [TikTok] restricts sponsored content directly or indirectly leading to affiliate links, for example to sign up for a trading platform and get free shares,” said Informed Choice's Head of Client Education, Martin Bamford.

“We see a huge amount of this branded content on TikTok, usually from uninformed commenters, luring followers with promises of wealth, but in reality they only want to make money from people signing up via affiliate links,” added Bamford. The point is that many of these ads sell false promises to TikTok users pengguna

It's unclear whether TikTok's ban applies to all discussions of financial products, or only promotional ones. On the other hand, Google had banned crypto ads in 2018. But now they have started to partially remove the ban this year for some entities.