It appears that the reason TikTok banned these types of ads is to help curb the number of potential scams out there. While this does impact legitimate crypto brands, these scams have shown to be targeting young people, and the platform is doing its part in avoiding that.
This is why TikTok’s new beta crypto program is requiring that qualified brands are approved by specific regulatory bodies. They’re working to ensure that legitimate crypto brands are able to run ads while still weeding out the scammers.