YouTube, Instagram, TikTok, and Twitter could have to deal with regulatory action due to complaints about the online platforms addressed to the European Commission.
The European Consumer Organization (BEUC) reported to authorities that they believe the platforms are contributing to the misleading promotion of crypto assets, resulting in consumer harm and significant loss of money.
With the help of advertisers and influencers, these platforms have become a breeding ground for the promotion of cryptocurrency, despite failing to provide precise information for both advertisers and consumers.
For example, in 2022, Kim Kardashian was charged by the U.S. Securities and Exchange Commission for failing to disclose crucial information when she advertised EthereumMax on her Instagram account, further raising the issue of celebrity crypto endorsements.
Despite the European Union adopting the first-ever set of rules for crypto asset regulation just last month, the BEUC maintains that this is not enough to regulate the way crypto is unlawfully presented online.
"Crypto will be regulated soon with the new Market in Crypto Assets Regulation but this legislation does not apply to the social media companies benefiting from the advertising of crypto at the expense of consumers," said Monique Goyens, the director general of BEUC, in a public statement.
In addition to insisting on stricter guidelines, the BEUC has requested regular reports about the effectiveness of newly implemented measures.
“This is why we are turning to authorities in charge of protecting consumers to ensure Instagram, YouTube, TikTok, and Twitter fulfill their duty to protect consumers against crypto scams and false promises,” Goyens added.
Other than the Brussel-based BEUC, consumer organizations from Greece, Italy, Lithuania, Denmark, France, Slovakia, and Spain have also publicly supported and signed the complaint.