The European Commission has received a complaint from the largest consumer rights group in Europe, accusing cryptocurrency marketers on popular social networks of engaging in a misleading promotion that poses a significant risk to consumers.
European Consumer Organisation (BEUC) an umbrella group of European consumer organizations has lodged this complaint targeting Meta Platforms’ Instagram, Alphabet’s YouTube, TikTok, and Twitter. Consequently, regulatory action against these platforms is being considered to address the issue and safeguard consumers.
However, under the Europen Union forthcoming Markets in Crypto Assets regulation, MiCA, crypto providers will need a license to advertise across the bloc, and the parallel Digital Services Act extends extra constraints on various online platforms.
BEUC maintained that extra measures are never required under existing consumer laws that disallow unfair commercial practices because crypto scams could expose people to heavy financial losses. Crypto promotion is all over the media , you see it on primetime TV,” Goyens reiterated. She added that football superstars such as Lionel Messi and Cristiano Ronaldo, stars of and other celebrities have promotions linked to crypto.com and Binance.
Meanwhile, Online platforms have a sense, duty and an obligation of professional diligence” under Europen rules to counter unfair commerce, Goyens noted saying that some networks are breaching their own ad policiesn
National consumer authorities can levy fines on breakers of consumer law, though Goyens said she wanted sanctions to be punitive. Last year in previous case, TikTok promised to oblige with EU strictures after BEUC complained of hidden marketing and aggressive ads targeting minors
Also, only Crypto firms who are registered with regulators will be allowed to do crypto promotions, recently France passed a landmark legislation to regulate influencers