After European consumer group BEUC complained to the European Commission and consumer authorities that Instagram, YouTube, TikTok, and Twitter promote crypto assets misleadingly, the platforms may face regulatory action.
U.S. regulators suing Coinbase COIN.O and Binance and FTX’s collapse last year have raised concerns about consumer safety for crypto assets like bitcoin and ether.
Last month, the EU implemented MiCa, the first comprehensive crypto asset regulation.
On Thursday, BEUC filed a complaint alleging that social media platforms’ false crypto asset ads expose consumers to considerable harm, including financial loss.
Advertising and influencers were responsible.
It requested the Consumer Protection Cooperation Network to force online platforms to establish tougher crypto advertising regulations and prohibit influencers from misleading consumers.
BEUC and nine of its members complained to the European Commission that the Network should report on the effectiveness of these measures.
The organization urged European consumer authorities to work with European Supervisory Authorities for financial services to ensure platforms change advertising standards to avoid crypto misinformation.
“Crypto will be regulated soon with the new Market in Crypto Assets Regulation but this legislation does not apply to the social media companies benefiting from the advertising of crypto at the expense of consumers,” BEUC Director General Monique Goyens said.
“This is why we are turning to the authorities in charge of protecting consumers to ensure Instagram, YouTube, TikTok, and Twitter fulfill their duty to protect consumers against crypto scams and false promises,” she said.
Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia, and Spain consumer groups joined the complaint.
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