Tiktok has banned the advertisement of various financial services products such as investments and cryptocurrency, the Financial Times recently reported.
The social media platform’s branded content policy states that the promotion of all financial services and products is now globally prohibited.
Tiktok said that the banned products include lending and management of money assets, crypto, forex, pyramid schemes, investment services and get rich quick schemes and others.
The ban follows warnings and concerns that financial information from TikTok could be misleading. The FCA has also expressed its concerns over young individuals being at risk in investing, taking their information from social media.
The growing pressure has driven Google and other internet companies to take measures against scam ads showing on their platforms after fraud levels have risen, fueled by Covid. Last month, Google forced all financial services advertisers to indicate that they are authorized by the FCA.
Last month, research showed that an increasing number of UK crypto firms are pulling out from FCA registration as scrutiny rises in the crypto sector. In the end of June, the FCA banned the largest crypto exchange, Binance, from conducting regulated activity in the UK.
According to its website, TikTok prohibits advertisement of virtual currencies and cyrpto, crypto trading platforms and advisory services in the US as well.
