On the 8th of June, the European Consumer Organisation (BEUC) – a collective of 46 consumer organizations from 32 nations – released a 20-page document entitled “Hype or harm? The Great Social Media Crypto Con.” The report asserted that consumers are not completely cognizant of the hazards associated with cryptocurrency.
The report cites Instagram, YouTube, Twitter and TikTok as “key players” in crypto advertising, and notes that Facebook crypto ads skirt regulations that forbid the promotion of non-licensed financial platforms. The announcement declared:
Regarding Twitter, the report acknowledges Elon Musk’s decision to employ Doge, the mascot for Dogecoin (DOGE), in spite of the platform’s own ban on cryptocurrency advertising. The BEUC also states that “finfluencers” are “a significant source of information” for a younger demographic.
EU officials are advocating for the labeling of all AI-generated content.
In spite of the endeavors of national regulators to battle deceptive advertising, the issue still needs a multifaceted strategy. According to the report, there is already a legal framework in place to implement EU-wide measures – the Unfair Commercial Practices Directive – and an organization to direct enforcement called the Consumer Protection Cooperation Network (CPCN).
The report recommends that the CPCN ask social media platforms to put stricter conditions in their advertising policies, including a ban on influencers promoting crypto products in their terms of use, and that they provide reports to the European Commission regarding the effectiveness of the measures taken.
In France, the Senate gave the green light to an amendment that permits registered crypto firms to utilize social media influencers for advertising and promotional activities.
The magazine states that Bitcoin is heading towards achieving “Net Zero” goals.
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