China continues to wage war on cryptocurrencies, this time with the digital social media platform TikTok as the officials have announced certain limitations when it comes to advertising on its platform with the inclusion of the issue of cryptocurrency.
The new rules on posts on the Chinese site are intended to limit users to promotional content, especially financial products, and the ban is not only for those in China; it is for all TikTok users worldwide. Apparently, this decision is applied after a warning made to individuals about the possibility of obtaining financial information from TikTok, which is misleading and which can also catch the youngest, who are the regular users of this platform.
Precisely what most distresses the authorities are young users who seek investments online, and in this regard, it is highlighted that social networks must assume their responsibility for young investors to assume the overall risks while investing.
For content specialists, TikTok shows a large amount of content in this area of crypto assets and is also full of “misinformed” comments that lure the most novice followers with tricks about being a millionaire. Meanwhile, the TikTok brand announced last June its partnership with Citizens Advice in order to launch educational videos on the topic of financial investment and the right decisions to take. The intention of the Chinese platform was to advise users on cyber fraud, in addition to generating trust and adequate advice.
There are several internet giants that have already received pressure to take action against fraudulent ads that appear on the platforms, most commonly being Google, Facebook, and Instagram. In this sense, Google recently took measures against financial fraud by forcing all advertisers on its platformto be authorized by regulators. In fact, in 2018, this platform eliminated cryptocurrency ads, although, in 2021, part of those prohibitions was eliminated.
As for TikTok’s advertising policy, in general, it remains unchanged and will allow financial companies to pay for advertising for people over 18 years of age, although legal corporate cryptocurrency advertisements are prohibited. TikTok will try to stop banks, fintech, and other financial platforms that sponsored influencers to promote financial products that are mostly of dubious origin.
It is not clear that the sole purpose of this ban is to protect the very young from financial fraud. Many doubt that everything is related to the war that the government of China has imposed on crypto assets. Months ago, China hit the cryptocurrency and bitcoin market hard, announcing a measure through its central bank requiring the blocking of all crypto transactions at the country’s major banks.