On its platform, TikTok prohibits influencers from promoting cryptocurrencies such as Bitcoin and Dogecoin.

Legitimate financial businesses may be affected by the new laws since they will no longer be able to utilize influencers to promote their goods.

TikTok, a Chinese-owned video-sharing app, has revised its sponsored content policy to prohibit all financial services and goods from being promoted, including influencers pushing cryptocurrencies, stock trading, and buy-now-pay-later schemes. The change, according to the business, is intended to combat the growing use of the massively popular social media platform to perpetrate frauds, scams, and dishonest behavior that may infringe on people’s privacy. However, it comes only weeks after Beijing imposed a ban on bitcoin mining activities due to “environment concerns,” prompting miners to close up businesses and leave mainland China. The new TikTok restrictions will affect genuine financial businesses.

Without the option to pay influencers or TikTok for advertising, cryptocurrency’s time on the platform may be coming to an end. The company’s advertising policy, however, remains intact, allowing financial services businesses to advertise to those above the age of 18.

TikTok’s cryptocurrency policy has been modified.

All branded content promoting financial services and products, including but not limited to loans and credit cards, buy now pay later (BNPL) services, trading platforms, cryptocurrency, foreign exchange, forex trading, and so on, is prohibited, according to TikTok’s updated policy under the heading “Globally Prohibited Industries.” After the government banned the social networking platform in 2020, along with numerous applications from Chinese businesses, the policy is no longer available from India, which the government announced in January this year was a permanent ban. However, sources have verified TikTok’s new stance.

To expand their reach, several crypto-trading businesses utilize TikTok influencers, often known as “Fintok” advisers. As a result, some of them may provide false and uncontrolled financial advice regarding investing in assets such as Bitcoin and Dogecoin to young and inexperienced investors who want to increase their money rapidly but lack a thorough grasp of the market.

Google has taken a similar position.

Google, like TikTok, has taken a firm position against fraudulent ads on its site. Google UK announced a few weeks ago that beginning in September, the firm will require financial services companies to authenticate their identities in order to combat fraudulent ads on its platform.

Meanwhile, China’s crackdown on cryptocurrencies has intensified, with officials in Anhui province recently prohibiting trade in the highly volatile digital currency in order to reduce power usage to a tolerable level. The action began in late May, starting with key mining centers such as Sichuan, Inner Mongolia, and Xinjiang, resulting in a catastrophic crypto market crash. Prior to the crackdown, China was responsible for about 70% of worldwide Bitcoin manufacturing.