News Crypto and cryptocurrencies

TikTok bans financial services, including cryptocurrencies

What is the reason for the decision taken by the Chinese social network?

TikTok has also decided to ban cryptocurrency. A decision which is certainly not an absolute novelty in the world of social media, considering that already Facebook had opted for the exclusion of digital assets from paid promotions, but that still prompted many to ask the real reason for this measure.
The main difference between Mark Zuckerberg's social media decision and TikTok is to be seen in the fact that in this case, non-paid content and, in general, all financial services would also be banned. The lack of distinction on the first point, however, seems to be due to the fact that on the Chinese social network it is quite complicated to distinguish between sponsored and non-sponsored content.

TikTok - TikTok bans financial services, including cryptocurrencies

TikTok: What are the banned contents?

The list of content banned by TikTok is indeed very large. In fact, it goes to understand all financial services, i.e. loans and management of monetary assets, credit, debit and prepaid cards, BNPL (Buy Now Pay Later) services, trading platforms, cryptocurrencies, exchange, Forex trading, commemorative coins, investment services and much more. The list also includes the pyramid schemes and the many scams that now characterize the financial sector, traditional or not.
It will probably not be a consolation for supporters of digital assets, but the exclusion of cryptocurrencies and related businesses is practically extended to any financial service. It remains to be seen whether, in this case, the common sickness can lead to the classic half-joy.

The role of the FCA in what happened

From the first rumors that emerged about the incident, it seems that the ban implemented by TikTok is due to a precise intervention by the Financial Conduct Authority (FCA), or by the supervisory body of financial services conducted on British soil. Which would have found that younger consumers, or under 30 years, are attracted to high-risk products, as they are potentially able to generate greater profits.
Considering how the Chinese social network boasts a vast catchment area in this range, equal to half of its users, some observers have advanced the hypothesis that the ban on financial products, without any distinction, is due to the notice of the FCA. A thesis which, however, does not sound very convincing. Especially if you take it into consideration what is happening in China, regarding Bitcoin and digital assets in general.

Is the real reason for the ban to be found in the decisions of Beijing?

As is now known, the Chinese government seems to have declared war on Bitcoin and cryptocurrencies in general. A hostility to be traced back to the now imminent advent of digital yuan e aimed at wiping out any possible form of competition from the Asian giant's territory. In particular, all those that cannot be controlled or managed by the state. TikTok, therefore, would simply comply with the directives of the Beijing government.
According to some observers, such a decision could be the source of considerable problems in the future. In particular, it could negatively impact China's technological and innovation capacity. Which, however, has not decided to leave the blockchain, but simply from one of its application cases, the best known at the moment. Now it remains only to understand which of the two interpretations is the one that is more in keeping with reality.

Buying Cryptocurrencies? Exchange Binance Binance

Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

Leave a comment

Your email address will not be published.

Back to top button