TikTok updated its brand content guidelines this week – and the social media giant is now putting a stop to crypto influencers. The policy could have implications for creators whose content revolves around the crypto and broader financial landscape.
TikTok vs Crypto
While the directive amendment provides for some exceptions, the newly banned area of content is “Financial services and products”. This category includes, but is certainly not limited to, topics such as crypto, loans and credit cards, trading platforms, Forex trading, commemorative coins, investment services and more.
However, TikTok’s advertising policy remains unchanged. This currently allows financial services companies to advertise to people over the age of 18. Despite this, advertising for cryptocurrencies and digital assets such as Bitcoin or Ethereum specifically on the platform is already banned.
However, despite all the regulation, TikTok has become an emerging financial information tool for young consumers. The financial corner of the platform, called “FinTok” or “StockTok”, is a massive mix of speculation, exaggeration and actual financial insights or perspectives.
In the course of this, TikTok has recently been increasingly criticized for allowing unregulated financial advice on the platform.
A sign of the times?
Crypto advertising, the so-called” shilling”, is not uncommon on social media channels these days, and TikTok is no exception. A recent example is the”Save The Kids” token, which is promoted by well-known influencers of the “FaZe clan”. It is now speculated whether popular influencers who advertise the token must expect legal consequences.
When it comes to TikTok, the audience is also usually much younger, as the platform primarily appeals to a Gen Z and young Millennial audience. However, this only reinforces the concerns.
Of course, crypto demographics generally consist of a younger audience, making TikTok a viable medium for creating and consuming crypto content. In a statement to media company FT Adviser, Informed Choice’s head of customer training Martin Bamford said he views the policy change as a ” tightening of directly or indirectly sponsored content that leads to an affiliate link, for example to sign up to a trading platform and receive free shares.”
Accordingly, the impact of TikTok’s recent policy change could likely also affect reputable content creators in the crypto industry. Legitimate financial companies will likely be affected and will no longer be able to use influencers through TikTok in the same way that they currently do.
Text credit: Bitcoinist
Last updated on July 10, 2021
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