- TikTok has banned creators from publishing sponsored content related to cryptocurrencies and investing services.
- The social media app’s branded content policy also bans the promotion of weapons, alcohol, and gambling.
- TikTok said the policy is “designed to ensure a safe and positive environment” for users.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
TikTok has banned creators from publishing sponsored content related to finance including investment services and cryptocurrencies.
The Financial Times first reported last week that the social media platform updated its branded content policy, which bans the promotion of industries like alcohol, weapons, and gambling, to include financial services on its list of prohibited content.
Tik Tok said its policy included but was not limited to cryptocurrency, trading platforms, investment services, get rick quick schemes, foreign exchange, debit and pre-payment cards, forex trading, and others.
The social media platform is awash with financial content, with the hashtag “#investing” gaining over 2.8 billion views. The ban appears to only apply to sponsored content, not general videos discussing cryptocurrencies and investments.
Errol Coleman, a TikTok financial content creator with 264,000 followers, said the recent news that a large esports organization was promoting a token that could have been a scam on social media may have propelled TikTok to tighten its policies.
“There are many accounts now promoting questionable cryptos and other investments,” he added. “I believe that is where TikTok is seeing the issue.”
Coleman doesn’t post sponsored investment content and therefore won’t be affected by the ban.
TikTok’s ban comes as financial regulators warn investors to watch out for fraudulent investing advice and information. In December, the SEC said it experienced a significant uptick in tips, complaints, and referrals involving investment scams.
The social media platform said its branded content policy is “designed to ensure a safe and positive environment” for TikTok users.
Business News Governmental News Finance News
Need Your Help Today. Your $1 can change life.