The EU is making some moves and turning its eye toward social media platforms as the US crackdown on crypto companies settles . In the wake of the regulatory storm hitting the crypto currency world Europe is now directing its spotlight onto popular social media players like Instagram , Twitter , YouTube and eve TikTok .
Concerns over Misleading Crypto Ads
Raising concerns over misleading crypto ads the European Consumer Commission (BEUC) has taken action by lodging complaints against Instagram , YouTube , Twitter and TikTok . These platforms could face regulatory consequences .
After all the fuss caused by US regulators going after crypto companies it seems the EU has decided to shift its focus to social media platforms . The SEC’s legal action against Binance and Coinbase has created a really big stir in the crypto currency market . While the US regulators tighten their grip on crypto currency firms the EU has opted to keep a close eye on some of the social media platforms .
According to the recent report from Reuters the BEUC has filed complaints with the European Commission about Instagram , YouTube , Twitter and TikTok . The essence of the issue lies in the potential for these platforms to facilitate the spread of misleading ads about crypto currencies . The BEUC argues that such practices pose significant risks to the consumers . As a result regulatory penalties may be looming for these social media giants .
US Regulatory Actions: Protecting Investors’ Digital Assets
In response to the challenges faced by the crypto currency industry in the past year including the collapse of several companies US regulators took action to protect investors’ digital assets like Bitcoinand Ethereum . After the fall of the FTX exchange concerns about the safety of these assets has risen .
Various countries including the US and the EU implemented some measures . While the US choosed strict regulations the EU choosed a different way by working on the regulation of crypto currency assets through the Markets in Crypto Assets (MiCA) legislation .
BEUC’s Call for Consumer Protection Measures
The BEUC reported a complaint on June 8 putting forward that the increase of misleading crypto ads on social media platforms . This exposes consumers to really big financial harms . To tackle this issue the BEUC has called on the Consumer Protection Collaboration Council to take some measures preventing online platforms from allowing deceptive crypto ads . They also urge actions to prevent influencers from misleading consumers . The BEUC alongside its nine members jointly filed the complaint and is demanding an evaluation of the effectiveness of these measures with a report to be submitted to the European Commission .
Monique Goyens the General Manager of the BEUC shared her thoughts on the matter expressing that digital assets will soon be regulated under new Crypto Assets Market Regulations . However Goyens stressed the need to address the concern that current regulations do not encompass social media companies taking advantage of misleading crypto currency ads .