Recently, US regulators have also sued cryptocurrency platforms Coinbase and Binance. Along with the collapse of FTX last year, the issue of consumer protection regarding crypto assets like Bitcoin and Ether on the network has come into sharp focus.
Misleading advertising about cryptocurrencies and other assets is rampant on social media. Photo: Economist
In a complaint filed on Thursday (June 8), the European consumer association alleges that the proliferation of misleading advertisements about cryptocurrencies on social media is an unfair commercial practice, as it causes consumers to suffer serious harm such as losing significant amounts of money.
They said this was happening through advertising and information from social media influencers. They called for authorities to adopt stricter advertising policies on cryptocurrencies and take measures to prevent influencers from misleading consumers.
The European Union last month adopted the world’s first comprehensive set of rules on cryptocurrencies. However, BEUC director general Monique Goyens said that “the law does not apply to social media companies that profit from advertising cryptocurrencies at the expense of consumers.”
“This is why we are turning to the authorities responsible for consumer protection to ensure Instagram, YouTube, TikTok and Twitter fulfill their obligations to protect consumers from scams and false advertising about cryptocurrencies,” Goyens added.
Currently, a number of consumer associations in Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain have also registered complaints.
Huy Hoang (according to Economist, Reuters)
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