BEUC Complains Social Media Platform Regarding Promotion Misleading Crypto Assets

Crypto advertisements on social media are starting to be complained a lot. (photo: dock. pexels)

JAKARTA - The European consumer group, BEUC, has filed a complaint with the European Commission and consumer authorities regarding alleged online platform facilitation such as Meta Platforms' Instagram, Alphabet's YouTube, TikTok, and Twitter in promoting misleading crypto assets.

Lawsuits against crypto platforms Coinbase and Binance by US regulators, as well as the fall of FTX last year, have raised concerns about consumer protection of crypto assets such as bitcoin and ether.

Last month, the European Union adopted the world's first comprehensive rule for crypto asset regulation (MiCa).

In a complaint filed on Thursday, June 8, BEUC stated that the spread of misleading advertising regarding crypto assets on social media platforms is an unfair commercial practice because it can cause serious harm to consumers, such as significant money losses.

BEUC explained that this happened through advertisements and influence from influencers.

The group is encouraging Consumer Protection Cooperation Networks to demand that these online platforms adopt stricter advertising policies related to crypto assets and take steps to prevent influencers from misleading consumers.

Furthermore, the network is expected to notify the European Commission of the effectiveness of these measures, as stated in a joint complaint with nine other BEUC members.

The group also called on European consumer authorities to cooperate with the European Supervisory Authority for financial services to ensure the platforms adjust their advertising policies to prevent misleading promotions related to crypto assets.

"Regulations on crypto assets will soon be in effect with Market Regulations in the new Crypto Assets, but this regulation does not apply to social media companies benefiting from advertising crypto assets at the expense of consumers," said BEUC Director General

"Our permission to file a complaint to the authorities responsible for protecting consumers is to ensure that Instagram, YouTube, TikTok and Twitter fulfill their obligations in protecting consumers from fraud and false promises related to crypto assets," he added.

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