Representational image. News18
Representational image. News18
After European consumer organisation BEUC protested to the European Commission and consumer authorities that the internet platforms allegedly encourage the false advertising of crypto assets, Meta Platforms’ Instagram, Alphabet’s YouTube, TikTok, and Twitter might face regulatory action.
US regulators suing crypto firms Coinbase and Binance, as well as the collapse of FTX last year, have raised worries about consumer safety in relation to crypto assets such as bitcoin and ether.
Last month, the European Union enacted the world’s first complete set of guidelines for crypto asset regulation (MiCa).
According to the BEUC’s complaint, which was submitted on Thursday, the proliferation of deceptive marketing for crypto assets on social media platforms is an unfair business practice since it exposes consumers to substantial harm, such as the loss of considerable amounts of money.
It was stated that this was accomplished through advertising and influencers.
It encouraged the Consumer Protection Cooperation Network to compel internet platforms to implement tougher crypto advertising regulations and take steps to prevent influencers from deceiving customers.
BEUC claimed in a joint complaint with nine of its members that the Network should then notify the European Commission about the success of these efforts.
The organisation urged European consumer authorities to work with European Supervisory Authorities for Financial Services to ensure that platforms’ advertising regulations are updated to avoid the deceptive marketing of cryptocurrency.
“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 in a statement.
“This is why we are turning to the authorities in charge of protecting consumers to ensure Instagram, YouTube, TikTok and Twitter fulfil their duty to protect consumers against crypto scams and false promises,” she said.
Consumer groups in Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain also signed up to the complaint.
Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.