The new law on TikTok will prevent users from publishing promotional videos on financial goods, services or products.
On Friday, TikTok stated that certain forms of advertisements will no longer be permitted on their site. According to an article published on July 8 by FT Adviser, crypto-based advertising content is now prohibited.
Regardless of the poster’s physical location, the new limits on the social video uploading site will specifically prohibit users from publishing promotional content concerning financial goods.
The marketing of all financial services and products is now universally prohibited, according to TikTok’s branded content policy, according to the FT Adviser article.
In 2020, TikTok was a hotbed for Dogecoin (DOGE) enthusiasm, with users sharing relevant videos in an attempt to persuade more people to get on board.
In recent months, several social media platforms have held important financial markets talks, with stock discussions on Reddit becoming increasingly popular.
Martin Bamford, client education head at Informed Choice, told FT Adviser, “My reading of this is [TikTok] is clamping down on directly or indirectly sponsored content that leads to an affiliate link, for example, to sign up to a trading platform and obtain free stocks.” In addition, he said:
“We see a huge amount of this branded content on TikTok, usually from poorly informed commentators, who lure in followers with promises of riches, but in reality are making their money off people signing up via affiliate links.”
It’s unclear whether TikTok’s restriction covers all financial product discussions or just those that are purely promotional.
In 2018, Google banned crypto marketing, albeit part of that prohibition was lifted this year for select companies, subject to specific conditions.