TikTok, the social media platform launched in September 2016, faces a potential ban in the United States. Will this affect the cryptocurrency market?

On January 19, the ban on TikTok in the United States will go into effect under the Protecting Americans from Foreign Controlled Apps Act. This legislation would make it illegal for app stores — run by Google and Apple — and web hosting services to distribute or serve TikTok.

A social media application that achieved advertising revenues of $6.2 billion In the US in 2023, the Supreme Court required the app to either be sold or face a ban.

the law It cites national security concerns as the main reason for the ban, fearing that the Chinese government could access user data collected by TikTok.

However, crypto-friendly President-elect Donald Trump is looking for a resolution to get around the ban. Trump even introduced a commander To save the fate of TikTok. Many senators such as Ed Markey have also taken a stance against the ban.

https://twitter.com/scubaryan_/status/1879339800089825791

On January 10, the Supreme Court conducted oral arguments on the matter, and the decision will likely be issued before the January 19 deadline.

The outcome will determine whether TikTok will continue to operate under current ownership in the US or ByteDance, TikTok's parent company, will be forced to divest to comply with a new law.

Crypto culture on TikTok

In October 2024, the UK's Financial Conduct Authority raised concerns about TikTok's virtual gifting system. TikTok allows users to purchase TikTok Coins, which enable them to give gifts to content creators, as reported in Financial news.

TikTok coins were converted into “diamonds,” which were then cashed out, similar to how cryptocurrencies work. However, the FCA still expresses concerns about the risks involved in unregulated cryptocurrency activities, ranging from money laundering to inadequate consumer protection.

However, this is not the first time TikTok and cryptocurrencies have collaborated. In fact, in December 2024, Sonic, Solana (Sol) Focused on games Layer-2 blockchain, to choose TikTok as a platform to drop its SONIC token to all the users who are on board with the social media app.

Sonic has built a SonicX game directly within TikTok, hoping to replicate the success of Toncoin-based mini apps (Tons) blockchain within Telegram. The game has gained over 2 million users via TikTok.

According to Drumsocial media marketers often use TikTok to start reviving interest in cryptocurrencies with its large space to create content that simplifies complex ideas into easy-to-understand forms that appeal to a younger, tech-savvy audience.

Moreover, in 2020, the virus has become #DogecoinTiktokChallenge It was launched, with cryptocurrency influencers pumping out Dogecoin (Doug) by 20% within a week.

Could a ban affect cryptocurrencies?

Although it is unfortunate, the TikTok ban in the US is “unlikely to impact the cryptocurrency market,” Alejandro Zambrano told crypto.news in a message.

Zambrano, who is chief market strategist at ThinkMarkets, a global online broker offering forex, CFD and cryptocurrency services, said TikTok has been suppressing cryptocurrency-related content for years.

“TikTok has suppressed cryptocurrency-related content for years, making its shutdown largely irrelevant to the industry. For example, top cryptocurrency influencers on Furthermore, today's top TikTok accounts attract significantly fewer views on similar content than leading influencers on X.

Alejandro Zambrano, Chief Market Strategist at ThinkMarkets

To ban financial services and products, including cryptocurrencies, in July 2021, TikTok revised its content policy in an attempt to take a firm stance against misleading advice and high-risk investment schemes.

In light of the content bans that have already been imposed, it is unlikely that there will be a significant impact on the cryptocurrency sector if TikTok is banned entirely in the US.