TikTok has added financial products and services including cryptocurrencies and pyramid schemes to the list of prohibited promotional content on its platform.
A Financial Times report said the move comes after users were warned about financial advice from TikTok videos as it could be misleading, especially for young savers.
On its “Branded Content Policy” page, TikTok added financial products and services to its “Banned Industries Worldwide” list.
The section includes monetary lending and asset management, loans and credit cards, buy now and later services, trading platforms, cryptocurrencies, foreign currencies, debit cards and prepayment, currency trading and pyramid schemes.
But “the real proof of TikTok’s commitment to cleaning up its act will be in the way it enforces the policy to ensure that banned content is identified and removed promptly,” said Anthony Morrow, co-founder of the service. OpenMoney financial advice.
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“We know that social media influencers are fueling the demand for day trading and unregulated investments like cryptocurrencies by talking about the potential returns without explaining the huge risks involved.”
Morrow said TikTok posts including #bitcoin received 4.4 billion views, while #cryptocurrency had 1.5 billion views, #investment 790 million and #stockstobuy 447 million.
He stressed the importance of getting advice from someone “who is properly qualified to talk about options” as well as making sure you understand and are comfortable with the level of risk you are taking. “
Last month, TikTok partnered with UK Citizens Advice to create videos on how to make informed financial decisions and understand financial terminology.
Earlier this year, the UK’s Financial Conduct Authority (FCA) said young people were engaging in higher-risk investments, potentially motivated by the accessibility offered by new investment apps.
He warned that “there is evidence that these high-risk products may not always be suitable for the needs of these consumers, as nearly two-thirds (59%) say that a significant loss of investment would have a fundamental impact. on their current or future lifestyle “.
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