Widely popular social media app TikTok has reviewed its branded content policy. In a list of prohibited promotions, the app mentioned financial services, including cryptocurrencies.
The TikTok team mentioned the policies aim to ensure a safe and positive platform for users, preventing various frauds, scams, and high-risk investments. Lately, TikTok has been criticized for enabling misleading financial advice on its platform. Many young investors, who don't have good financial knowledge were attracted to the idea of getting rich faster. They were deceived by scammers and faced serious financial problems.
In February, United Kingdom’s financial regulatory FCA issued a report warning about the risks that social media advertisements include.Later, in April, PayPal co-founder billionaire investor Peter Thiel warned about TikTok saying it should be banned in the US. The entrepreneur said although he supports crypto, he is concerned about the risks the industry presents.
Note that TikTok played a key role in the growth of some meme tokens especially Shiba Inu and DOGE.