Bureau Européen des Unions de Consommateurs (BEUC) Urges Instagram, YouTube, TikTok, and Twitter to Ban Crypto Promotion by Influencers
The complaint stated that national regulators should enforce stricter policies on social media networks, demanding a ban on influencers promoting cryptocurrencies.
Monique Goyens, the Director General, highlighted that consumers are often enticed by “get rich quick” promises made in ads and by influencers on social media.
However, these claims are usually too good to be true, putting consumers at a significant risk of losing substantial amounts of money without any legal protection., a group representing various consumer organizations in Europe, has lodged a complaint with consumer protection bodies within the European Union.
The complaint urges popular social media platforms like Instagram, YouTube, TikTok, and Twitter to strengthen their rules concerning cryptocurrency advertising.
According to the upcoming EU regulation called Markets in Crypto Assets (MiCA), crypto providers will be required to obtain a license in order to advertise their services throughout the European Union. Additionally, the Digital Services Act imposes additional restrictions on major online platforms.
Despite these regulations, BEUC argues that further measures are necessary under existing consumer laws, as crypto scams have the potential to cause significant financial harm to individuals. These measures aim to prevent unfair commercial practices and protect consumers from substantial financial losses.
Goyens, speaking to reporters, expressed concern about the extensive promotion of cryptocurrencies, even on popular television channels during prime time. She mentioned that she no longer supports celebrities like Matt Damon and Cristiano Ronaldo, who have recently been associated with promotions for crypto.com and Binance, respectively, and stated that she is boycotting them.
Goyens emphasized that online platforms have a responsibility to uphold professional standards and adhere to EU regulations in order to combat unfair commercial practices. She further noted that certain networks are violating their own advertising policies.
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Agustín Reyna, a staff member of BEUC, informed reporters that social media networks have adopted varying approaches to moderating content. However, if they are unable to effectively prevent interactions with misleading material, he believes they should completely ban all promotions related to cryptocurrencies.
Recently, France introduced significant legislation to regulate influencers, who are social media users that leverage their influence to endorse products and services. The law specifies that only registered crypto firms will be permitted to engage in cryptocurrency promotions.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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