Instagram, YouTube, TikTok and Twitter could face regulatory action after European consumer group BEUC complained to the European Commission and consumer authorities that the online platform allegedly engaged in misleading advertising of crypto-assets. Provide convenience.

US regulators suing crypto platforms Coinbase and Binance, along with last year’s collapse of FTX, have raised concerns about consumer protections related to crypto assets such as bitcoin and ether.

The European Union last month adopted the world’s first comprehensive rules for cryptoasset regulation (MiCa).

BEUC, in its complaint filed on Thursday, said the proliferation of misleading advertisements of crypto assets on social media platforms is an unfair trade practice as it causes serious harm to consumers such as loss of significant funds.

This is being done through advertising and influence, he said.

It urged the Consumer Protection Cooperation Network to require online platforms to adopt stricter advertising policies on crypto and take steps to prevent influencers from misleading consumers.

BEUC, in a joint complaint with its nine members, said the network should subsequently inform the European Commission about the effectiveness of these measures.

The group called on European consumer authorities to cooperate with European supervisory authorities for financial services to ensure platforms adapt their advertising policies to prevent misleading crypto advertising.

BEUC Director General Monique Goyens said in a statement, “Crypto will soon be regulated with the new Market in Crypto Assets Regulation but this law does not apply to social media companies that sell crypto at the expense of consumers. are benefiting from the advertisements of

“This is why we are reaching out to the authorities responsible for consumer protection to ensure that Instagram, YouTube, TikTok and Twitter fulfill their obligations to protect users from crypto scams and false promises,” he said. fulfill.”

Consumer groups from Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain have also signed the complaint.