Cryptocurrency ads target social media ─ EU consumer groups demand stricter rules | CoinDesk JAPAN | CoinDesk Japan

The European Consumer Organization (BEUC), the governing body of European consumer groups, is calling on Instagram, YouTube, TikTok and Twitter to tighten rules for cryptocurrency advertising. A complaint has been filed with the European Union (EU) consumer protection authority.

BEUC said that national regulators should ask social media networks to tighten their policies to ban influencers from promoting crypto assets.

“Consumers are increasingly being promised ‘get rich quick’ by ads and influencer posts on social media,” executive director Monique Goyens said in a statement. “Unfortunately, most of the time these are not true, and consumers are at high risk of losing a lot of money if they don’t resort to law enforcement.”

The EU’s Crypto Market Regulation Act (MiCA) will require crypto providers to be licensed to advertise within the EU, and a parallel Digital Services Act will impose further restrictions on large online platforms. are doing.

BEUC says more action is needed under existing consumer laws that prohibit unfair business practices, as cryptocurrency fraud can cost people huge financial losses.

“Crypto propaganda is everywhere, even in primetime TV,” Goyen told reporters. “I’m no longer a fan of Matt Damon,” she said in reference to a recent promotion for crypto.com and Binance, referring to football star Cristiano Ronaldo as “a fan of Matt Damon.” It added that it was boycotting.

Online platforms are “obliged to exercise special care” under EU rules to combat unfair commercial practices, she said, with some networks violating their own advertising policies. and

In theory, consumer protection agencies around the world can impose fines on violators of consumer laws, but Goyen says he wants tougher sanctions. In a case last year, TikTok pledged to follow strict EU regulations after BEUC complained about stealth marketing and aggressive ads targeting children.

BEUC staff member Agustín Reyna said that social media networks take different approaches to content moderation, but if they can’t stop misleading content, they should stop promoting crypto assets. told reporters that it should be banned altogether.

France recently passed a groundbreaking law regulating influencers – social media users who use their influence to promote goods and services. Under the law, the promotion of crypto assets will only be permitted to crypto companies registered with the regulator.

CoinDesk has reached out to Twitter, Instagram, TikTok and YouTube for comment.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Social Media Targeted in EU Consumer Group Complaint About Crypto Ads