TikTok cryptocurrency restrictions explained

In Industry News

What does TikTok’s cryptocurrency ban actually mean? Why does TikTok suddenly want to distance itself from the cryptocurrency content being promoted on its platform? Learn more about TikTok’s anti-cryptocurrency content policies in this article.

TikTok is prohibiting creators from posting content relating to cryptocurrency. The short-form video platform has further imposed restrictions on companies looking to promote cryptocurrency through advertising on its platform. There is no denying that this move will have a lasting impact on creators and crypto communities alike.

History of TikTok

Although it needs no introduction, TikTok -- a modern-day social networking platform -- is extremely popular among the Gen Z crowd. TikTok is owned by ByteDance, a Chinese multinational internet technology company headquartered in Beijing.

It is estimated that TikTok currently amasses more than 1.1 billion monthly active users worldwide. Suffice to say, TikTok is a viral social media sensation, and it has quickly risen to become one of the world’s few short-form content platforms where independent creators have made quite a name for themselves.

TikTok crypto ban: What does it mean?

TikTok recently updated its branded content policy, coming down heavily on crypto. But wait for a moment. It is not just the cryptocurrency content that remains banned on the platform.

The company has also imposed restrictions on uploading user-generated content or display advertisements relating to other FinTech products and services like buy now pay later (BNPL) services, foreign exchange, debit, and pre-payment cards.

Here is what TikTok’s updated branded content policy has to say about promoting ‘financial services and products.’

“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 programmes, get rich quick schemes, debt consolidation services and penny auctions.”

Why is TikTok prohibiting crypto content?

In addition to crypto, TikTok has imposed influencer content restrictions on other financial services and products as well. However, TikTok’s advertising policy allows other financial services except crypto to target users over 18. Hence, the question arises: Why only crypto-related ads are prohibited on TikTok? 

Regulatory pressure on TikTok is believed to be one of the significant reasons. In the past, TikTok has received several warnings from UK’s Financial Conduct Authority (FCA) about a rise in fraudulent loan schemes and crypto-investment content being shared. The app has also been an integral part of amplifying pump-and-dump crypto scams in the past.

Is the TikTok crypto ban a good sign?

The crypto community remains hopeful that TikTok’s crypto ban would clean up the crowded content space. It should help TikTok keep unqualified content creators at bay and prevent misleading content from being shared in large numbers.

As far as crypto advertisements are concerned, there is no guarantee that crypto ads will forever remain banned on TikTok. After almost three years, Google has decided to allow crypto exchange and wallet operators to advertise their products and services on its network. As TikTok grows into a more healthy, honest, and mature video-sharing platform, it is likely to follow in the footsteps of Google to allow crypto exchanges and wallet services to advertise on its platform in the future.

However, it is interesting to note that TikTok’s policy update incorporating crypto content restrictions comes right after China’s anti-crypto crackdown measures increased twofold in recent weeks.

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