Instagram, YouTube, TikTok and Twitter are the target of an EU crypto advertising complaint

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BRUSSELS, June 8 (Reuters) – Meta Platforms’ Instagram (META.O), Alphabet’s YouTube (GOOGL.O), TikTok and Twitter could face regulatory action after European consumer group BEUC complained to the European Commission and consumer protection authorities that online platforms allegedly facilitate the misleading promotion of crypto assets.

US regulators suing crypto platforms Coinbase COIN.O and Binance, as well as the collapse of FTX last year, have raised concerns about consumer protections related to crypto assets such as bitcoin and ether.

Last month, the European Union adopted the world’s first comprehensive set of rules for the regulation of crypto-assets (MiCa).

BEUC, in its complaint filed on Thursday, said the proliferation of misleading advertisements of crypto assets on social media platforms is an unfair business practice as it exposes consumers to serious harm such as the loss of significant sums.

He said this happens through advertising and influencers.

He urged the Consumer Protection Cooperation Network to require online platforms to adopt stricter crypto advertising policies and take steps to prevent influencers from misleading consumers.

The Network should then inform the European Commission of the effectiveness of these measures, said BEUC in its joint complaint with nine of its members.

The group called on European consumer protection authorities to cooperate with European financial services supervisors to ensure that platforms adapt their advertising policies to prevent the misleading promotion of crypto.

“Crypto will soon be regulated with the new Crypto Assets Market Regulation, but this legislation does not apply to social media companies benefiting from crypto advertising at the expense of consumers,” said BEUC’s chief executive. , Monique Goyens, in a press release.

“That’s why we look to consumer protection authorities to ensure Instagram, YouTube, TikTok and Twitter fulfill their duty to protect consumers from crypto scams and false promises,” she said. declared.

Consumer groups in Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain also signed the complaint.

Reporting by Foo Yun Chee; Editing by Lisa Shumaker

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