TikTok Crypto Ban: Why it Happened and What Next
Popular video content platform TikTok has banned crypto-related ads and content from its platform in a move that is set to affect not only creators on the app but also fintech firms. Why did it happen? Why now? And what does the future hold for crypto space on Tiktok and mainstream media?
TikTok Slaps Ban on Fintech Sectors
The company recently placed a ban on the circulation of crypto content and ads on its platform, after a change in policies that was first made public by the DailyMail.
The ban explicitly forbids influencers on TikTok from posting or sharing crypto content and also rules out the opportunity for sponsored ads promoting cryptocurrency investment or similar activities.
Crypto firms, however, are not the only ones at the receiving end of TikTok’s crackdown; other fintech services like Forex and Loan programs or BNPL schemes got the brunt of TikTok’s pruning axe.
“All financial services and products are prohibited, including but not limited to lending and management of money assets, loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, debit and pre-payment cards, forex trading, commemorative coins, pyramid schemes (including non-financial services), investment services, credit repair services, bail bonds, debt assistance programs, get rich quick schemes, debt consolidation services and penny auctions,” TikTok policy update reads.
Why the TikTok Ban Happened
TikTok is estimated to have about 732 million monthly users across the world, and commands more young audiences between the age of 10 and 19 than either Facebook or Twitter.
According to the statement following its policy update, the social media company sees the crypto industry, Forex, and other financial services (which were victims of its ban) as unsuitable for its very young audience.
TikTok’s crackdown is bent on putting a stop to practices it considers high-risk investments, or misleading, or even fraudulent, as in the case of some loaning schemes rife on TikTok.
The video-sharing service has since received several warnings from UK’s Financial Conduct Authority (FCA) about the vulnerability of younger audiences to TikTok’s rife crypto-investment contents.
The app has not only been used to peddle investment tactics and advice, it has also been integral in the wave of community pumps, like in the case of Dogecoin and GameStop’s stocks.
With many financial companies already familiar and comfortable with the use of TikTok financial influencers (also called “Fintok'' advisers), a rippling list of firms is set to be affected by the TikTok’s ban.
What Next for Crypto After Ban?
There are optimistic expectations that TikTok’s recent ban would clean up the video-sharing space, especially as unqualified content creators only share fraudulent content for the money. Without the option for incentive, the network could grow into a healthier one where financial advice is honest and driven only by personal experiences.
There is also no guarantee that TikTok’s ban of crypto content or ads will last forever. Facebook’s ban, which was similar to TikTok’s, barely lasted a year after it was announced in 2018. As the cryptocurrency industry gains ground and even more traction, crypto might soon find its way back onto the popular video-sharing network.