Social media platform TikTok has halted the publicity of several financial services products including investments and cryptocurrency according to its new content guidelines.
Regardless of the user’s geographic location, the new restrictions on the social video uploading site will explicitly forbid users from publishing promotional content regarding financial goods.
It comes after people were cautioned not to use TikTok to get financial advice since it might be deceptive and trap young investors. The Financial Conduct Authority has expressed worry about young people seeking investments online, claiming that social media is partially to blame for young investors taking on too much risk.
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Martin Bamford, head of client education at Informed Choice, said:
We see a huge amount of this branded content on TikTok, usually from poorly informed commentators, who lure in followers with promises of riches, but in reality are making their money off people signing up via affiliate links
He also indicated that he does not yet know what the new laws would mean for regulated businesses and individuals.
TikTok joined up with Citizens Advice last month to provide videos on how to make educated financial decisions, get the most out of research, and decipher financial jargon. Not only TikTok but also other well-known platforms such as Google have been under increasing pressure to take action in response to fraudulent ads.
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