This week, TikTok has incorporated some new updates into its policy about the branded content, and it is placing a block on the crypto influencers. The implications of the policy include the developers whose content revolves around the broader financial spaces such as cryptocurrency.
The policy update
Although there are some exceptions, the latest prohibited content relates to financial products and services. The topics like loans, credit cards, crypto, forex trading, trading platforms, investment services, and commemorative coins are included in the above-mentioned category, but there are a lot more issues under the subject.
Nonetheless, the advertising policy of TikTok is still the same allowing the financial companies and services to advertise their content to people who are above the age of 18. Notwithstanding, the platform has already banned advertisements regarding digital assets and cryptocurrency.
Despite the regulations imposed by the social media platform, TikTok is being counted among the growing tools for young customers to acquire financial information. The financial segment of the brand, which is known as StockTok or FinTok, contains a significant fusion of over-exaggeration, speculation, as well as actual financial perspectives or insights.
In this respect, not long ago, comprehensive scrutiny has been exercised on TikTok for granting permission to take unregulated advice regarding finance through the platform.
A need of the hour?
Crypto advertisement is not a new concept for many channels of social media platforms, including TikTok. A new example of this is a token called ‘Save The Kids’, which was advertised on FaZe Clan by famous influencers. There are different speculations about whether the influencers involved in promoting the token are likely to face legal consequences.
In the case of TikTok, the millions of the audience are so young, which specifies more comprehensive scrutiny. This young audience uses TikTok as an authentic source for getting information about the crypto content. The FT (FinTok) Adviser and head of client education at Informed Choice Martin Bamford, in a talk, disclosed that he felt an alteration in the policy is actively or passively blocking the sponsored content which carries to a related link, for instance, signing up for a platform of trading to acquire free stocks.
Correspondingly, there is an expectation of a great impact to be created by the implementation of the latest policy alteration of TikTok. In this respect, the legal, financial organizations will be affected by not being able to let their influencers leverage via TikTok such as presently.