BEUC Advocates for Stricter Crypto Advertising Rules on Social Media Platforms

The European Union’s consumer protection agencies have received a complaint from BEUC, the umbrella organization for consumer organizations in Europe. The complaint speaks to the necessity for Instagram, YouTube, TikTok, and Twitter to strengthen their cryptocurrency-related advertising regulations. National authorities are asked to enact stricter laws, such as those that forbid influencers from endorsing cryptocurrency investments. In light of the fact that customers are increasingly exposed to tempting but false claims of instant wealth on social media, BEUC highlights the significance of shielding them from potential monetary losses without redress.

Reinforcing the Call for Stringent Regulations

BEUC claims in its case that social media platforms ought to be forced to tighten their regulations and impose a restriction on influencers advocating cryptocurrency. The BEUC’s director general, Monique Goyens, draws attention to the increasing popularity of “get rich quick” investment schemes through social media influencers and marketing. Unfortunately, the majority of these assertions are untrue, putting consumers at danger of suffering large financial losses.

Regulatory Landscape within the EU

In order to advertise across the EU, cryptocurrency providers must seek licenses under the upcoming Markets in Crypto Assets law (MiCA). Furthermore, the related Digital Services Act places additional restrictions on significant internet sites. To counter the possible financial loss brought on by cryptocurrency scams, BEUC notes that further safeguards are required in addition to the existing consumer rules, which forbid unfair business activities.

The Responsibility of Online Platforms

Director General Goyens emphasizes how prevalent cryptocurrency promotion is, even on primetime TV. She claims she is “no longer a fan of Matt Damon” and is “boycotting” soccer player Cristiano Ronaldo as a result of their association with recent crypto.com and Binance advertisements. Goyens adds that online marketplaces have a responsibility and professional duty to observe EU regulations against deceptive business practices. She also draws attention to the fact that certain networks are currently violating their own advertising guidelines.

Goyens supports harsher penalties even if national consumer authorities have the authority to charge people who break consumer law. In a previous instance, TikTok agreed to abide by EU legislation in response to BEUC’s complaints regarding aggressive and concealed marketing that targeted youngsters.

The Need for a Unified Approach

Reporters are informed by BEUC representative Agustn Reyna that social media platforms use various tactics for content moderation. However, he underlines that a complete ban on all cryptocurrency advertisements should be implemented if these platforms are unable to successfully prevent interactions with deceptive information. Recently, France passed ground-breaking legislation to control influencers, limiting the advertising of cryptocurrencies to registered businesses that follow legal requirements.