EU seeks to stricter regulate cryptocurrency advertising on social media

The EU has called for tighter regulation of cryptocurrency advertising on social media. The European Consumer Organization BEUC and its subdivisions have filed a complaint with the European Commission and consumer protection authorities against the most popular social networks. Among them are: Instagram, YouTube, TikTok, and Twitter — «for spreading advertising that deceives cryptocurrency investors.»

According to BEUC representatives, crypto marketers on popular social networks mislead users and expose them to serious risks. The platforms also allow circumventing the rules prohibiting the promotion of unlicensed financial products.

BEUC, which unites 45 independent consumer organizations from 31 countries, has published a document with evidence that cryptocurrencies are being promoted on social media in violation of the platforms' own advertising policies. «TikTok, Instagram, Twitter, and YouTube are responsible for not preventing false cryptocurrency advertising from appearing in ads and influencer accounts,» the document says.

The BEUC also mentioned the so-called financial influencers, who often pose as experienced traders. The authors of the report drew attention to the fact that bloggers have become an important source of information for young audiences. The latter, in turn, is more prone to buying cryptocurrencies without proper risk assessment than older generations.

BEUC representatives called on the European Commission to require social media platforms such as YouTube and Twitter to tighten their advertising policies regarding the cryptocurrency market. The appeal was signed by a group of consumers from Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia, and Spain. However, it is not specified how social networks should tighten their advertising policies.