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Social Media Platforms Advertising Misleading crypto assets

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A complaint came in that some social media platforms are promoting misleading adverts for cryptocurrency assets.

According to the BEUC reports, this occurrence happens via influencers and advertising.

Moreover, about Nine consumer groups throughout Europe were signatories to this complaint.

In addition, the consumer groups in Spain, Denmark, Slovakia, France, Portugal, Greece, Lithuania, and Italy were also signatories to the complaint.

More Details of the Story

Twitter, TikTok, YouTube, and Instagram may soon face regulatory action as about 9 consumer groups laid complaints against them.

This complaint was made to the European Commission and authorities against these mentioned social media platforms allegedly playing a role in promoting deceptive crypto assets.

READ ALSO: SEC Restraint on Coinbase & Binance Rises the Trading Volume on DeFi

The complaint was laid out by BEUC (European Consumer Group).

BEUC alleged that an increasing number of adverts that promotes cryptocurrency assets on social media exchanges amounts to biased commercial practice.

Furthermore, they expose consumers to losing massive amounts of money.

According the BEUC complaints, this situation occurs through advertising and influencers.

The European Consumer Group solicited the Consumer Protection Cooperation Network to ask the online platforms to enforce stricter advert policies on cryptocurrency.

Also, they were asked to take measures that can prevent influencers from deceiving consumers.

The joint complaint also urged the Consumer Protection Cooperation Network to inform the European Commission of the workability of the measure they undertook.

In addition, the joint group called on the European Consumer Authorities to collaborate with the European supervisory authorities for financial services.

Since this move will make sure that platforms modify their advertising campaign to avoid misleading the promotions of cryptocurrency.

United States Regulator’s Action Against Cryptocurrency Platforms

The US regulators took action against Binance and Coinbase together with the FTX which collapsed last year.

These actions by the US regulators have ignited concerns over consumer protection regarding crypto assets like; Ether and Bitcoin.

According to Monique Goyens, BEUC director-general’s statement, “Soon, cryptocurrency will be adequately regulated with the latest Market in Crypto Assets (MiCA) Regulation.

However, this legislation doesn’t pertain to those social media firms that benefit from the advertising of cryptocurrency at the expense of users”.

BEUC director-general went further to say “That is the reason we are appealing to the regulators who are in charge of safeguarding consumers to make sure that; Twitter, TikTok, YouTube, and Instagram fulfill their responsibility of protecting users against cryptocurrency scams and false promises”.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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