Pro: crypto industry can benefit from recent TikTok ban
- Marketing director Oleg Bevz: Ban is hardly a surprise
- Tatyana Shpakovych: TikTok is wary of possible financial scams
- TikTok needs more sophisticated verification mechanisms
On Friday, July 9, TikTok announced it was now illegal to promote financial products and services globally in line with the platform’s branded content policy. TikTok no longer welcomes cryptocurrency, foreign exchange, management and lending of money assets, credit cards, loans, buy now pay later services, pre-payment cards, and debits and trading platforms. According to specialists, the platform’s approach to enforcing the policy to quickly identify and remove banned content will be the true test.
What insiders have to say
We talked to Oleg Bevz, Marketing Director at Blockster and Tatyana Shpakovych, Product Manager at Blockster, a full-featured social network dedicated to the cryptocurrency and blockchain communities, on the crypto ban.
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Oleg Bevz is positive that the crypto industry can only profit from this ban. It’s a rapidly growing industry and the number of individuals and companies getting interested in crypto is perpetually on the rise. The industry will power its own development by reinvesting resources, especially if conventional markets continue to reject crypto. He added:
“TikTok banning crypto-related advertisements doesn’t sound in the least bit surprising. It just demonstrates once again that, despite the growing adoption, a number of traditional businesses still shun crypto. Legacy companies with a more conservative business approach try to steer clear of change and things they cannot fully control – in this case, cryptocurrencies, which are undeservedly connected to fraud and criminal activities in many minds.”
Tatyana Shpakovych says that considering the myriad of techniques TikTok has to make projects, services, and products go viral, the medium is wary of the possibility of financial scams. She points out that the new ban applies to a lot of financial services and products, not just cryptocurrencies. One unfortunate result of this is that not even legitimate companies can advertise their services now. She adds:
“In my opinion, it would be a better choice not to remove the possibility of advertising for these industries altogether but to develop more sophisticated verification mechanics and, possibly, introduce a more thorough moderation.”
This way, users would be guaranteed access to safe content, while financial companies would still enjoy TikTok’s global reach.