Wildly popular video-sharing app TikTok—which is partially responsible for the rise of meme cryptocurrencies like Dogecoin—has prohibited its users from promoting cryptocurrencies, The Daily Mail reports.
Apart from crypto, a slew of other financial services and products, such as loans, credit cards and forex trading, are also banned under the app's recently updated branded content policy.
Popular social media accounts usually receive a commission for endorsing certain products.
Some major fintech startups of the likes of Revolut would partner with "fintok" influencers to cater to the app's young audiences. However, the new policy will pull the plug on such collaborations.
There were concerns that some unscrupulous users were taking advantage of young people's credulity and lack of investing skills.Ads promoting cryptocurrencies have already been banned by the red-hot social media company.
The company has also advanced its approach to user safety by implementing a system that will automatically delete any videos that violate its rules:
Over the next few weeks, we'll begin using technology to automatically remove some types of violative content identified upon upload, in addition to removals confirmed by our Safety team.
Following the cryptocurrency market's recent boom and bust cycle, regulators are growing increasingly concerned about cryptocurrency marketing and advertising. As reported by U.Today, a U.K. watchdog said that it would start taking down irresponsible and misleading crypto ads this month.
Major social media platforms rushed to ban crypto ads after the crypto market crashed in early 2018.
##Fintok influencers will no longer be able to promote ##cryptocurrency projects on TikTok ##crypto ##cryptonews ##cryptoban ##Revolut♬ original sound - U.Today