Influencers Can’t Create Branded Crypto Content
TikTok’s new rules are aimed at users who receive compensation for promoting financial products, including cryptocurrencies and related services. This type of content is called “branded content.”
In addition to prohibiting branded content related to cryptocurrency, the new rules prohibit branded content related to traditional finance such as loans, credit cards, forex, get-rich quick schemes, and more.
The news is notable because TikTok has quickly become a hotspot for individual influencers who promote cryptocurrency investments. Celebrities such as Kim Kardashian and Jake Paul have engaged in promoting branded crypto content, and lesser-known influencers have done the same.
The new policy could force users to move to other competing social media platforms, some of which have less strict rules for monetization.
TikTok Will Not Ban Crypto Entirely
It remains to be seen how strictly TikTok will impose its new policy. However, given the vast amount of financial advice on the platform, it seems likely that TikTok will impose the rules quite forcefully.
YouTube, which briefly cracked down on the channels of crypto influencers at the end of 2019, provides a precedent for a strict policy.
Nevertheless, TikTok’s rules are not a blanket ban on the discussion of crypto. It seems that users will still be able to discuss established cryptocurrencies like Bitcoin and Ethereum. The rules may also leave room for users to promote cryptocurrencies if they are not being paid to do so.
Furthermore, the new rules will not affect companies that wish to run ads on TikTok directly, meaning that crypto exchanges and crypto wallet companies can still advertise within the limits of TikTok’s business policies.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.