Regulatory Action Imminent: Meta, Alphabet, Twitter, and TikTok Accused of Facilitating Misleading Promotion of Cryptocurrencies

European Consumer Watchdog Takes Regulatory Action Against Tech Companies and Social Media Platforms for Misleading Promotion of Cryptocurrencies

Technology companies and platforms social media such as Meta, Alphabet, Twitter and TikTok are facing regulatory action after Europe’s consumer watchdog complained to the European Commission and consumer regulators, accusing the platforms of facilitating the misleading promotion of cryptocurrencies.

US Regulators Also Express Concerns on Consumer Protection with Crypto Assets

The US regulators they cited in Judgment crypto platforms Binance and Coinbase, along with the collapse of FTX last year, have raised consumer protection concerns related to crypto assets such as Bitcoin and ether.

Europe Adopts World’s First Comprehensive Rules to Regulate Crypto-asset

Last month, the European Union adopted the world’s first comprehensive set of rules to regulate crypto-asset (Not).

Deceptive Advertisements are an Unfair Trading Practice

The proliferation of deceptive advertisements for cryptocurrencies on video platforms social media it is an unfair trading practice because it exposes consumers to serious harm such as the loss of large sums of money, the European Consumer Protection Organization said in its complaint, filed on Thursday in collaboration with nine of its members.

Call for Stricter Advertising Policies on Cryptocurrencies

He urged the organization to require platforms to adopt stricter advertising policies on encryption and take steps to prevent influencers from misleading consumers.

Cooperation between European Consumer and Supervisory Authorities

The group called on European consumer authorities to cooperate with European supervisory authorities for financial services to ensure platforms adjust their advertising policies to prevent the misleading promotion of cryptocurrencies.

New Market in Crypto Asset Regulation Does Not Apply to Companies Social Media

“Cryptocurrencies will soon be regulated by the new Market in Crypto Asset Regulation, but this legislation does not apply to companies social media who profit from cryptocurrency advertising at the expense of consumers,” said Monique Gouwens, director general of the European Consumer Protection Organization. in a declaration.

“This is why we are calling on consumer protection authorities to ensure that Instagram, YouTube, TikTok and Twitter fulfill their duty to protect consumers from cryptocurrency scams and false promises,” he said.

Consumer Associations in Eight Countries Join the Complaint

Consumer associations in Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain joined the complaint.

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