BEUC, an umbrella group of European consumer organizations, has filed a complaint calling on the European Union consumer protection bodies to toughen Instagram, YouTube, TikTok and Twitter's crypto advertising rules.
Social Media Targets in European Union Consumer Group's Complaint About Crypto Ads
BEUC wants Instagram, YouTube, TikTok, and Twitter to ban influencers from promoting crypto.
The complaint states that national regulators should ask social media networks to tighten their policies and ban influencers from promoting crypto.
"Consumers are increasingly being promised 'get-rich-quick' investments by social media ads and influencers," Managing Director Monique Goyens said in a statement.
"Unfortunately, in many cases, these claims are too good to be true, and consumers are at risk of losing too much money without seeking justice."
Under the EU's soon-to-be-enacted Crypto Assets Markets regulation MiCA, crypto providers will need a license to advertise across the block, and the parallel Digital Services Act places extra restrictions on major online platforms.
BEUC said that still, extra measures are needed under existing consumer laws that prohibit unfair business practices because crypto fraud can expose people to heavy financial losses.
France recently passed landmark law to regulate influencers, social media users who use their influence to promote goods and services. By law, crypto promotions will only be allowed for crypto firms registered with regulators.
*Not investment advice.