The European Consumer Organization (BEUC) has published a comprehensive report condemning popular social media platforms such as Instagram, TikTok, Twitter, and YouTube for their alleged role in facilitating scams related to digital assets.
The report sheds light on the risks associated with cryptocurrencies and the influence of crypto influencers while criticizing the loose policies maintained by these platforms that allow scammers to exploit unsuspecting users, especially teenagers.
The BEUC calls on the European network of national consumer authorities (CPC-Network) to enforce stricter advertising regulations and ensure adequate consumer protection.
The BEUC report emphasizes the need for the CPC-Network to take action and enforce stricter advertising policies on social media platforms.
It recommends including a prohibition on influencers promoting crypto products in the platforms’ Terms of Use and implementing mechanisms to prevent consumers from being exposed to unfair commercial practices related to digital assets.
The BEUC, representing consumer organizations in 31 countries, aims to safeguard consumer interests and address the growing concerns surrounding crypto scams.
Coinciding with the BEUC’s report, the European Union has been actively working on comprehensive crypto legislation.
The recent approval of the Markets in Crypto Asset (MiCA) legislation is a significant step toward countering the prevalent “wild west” mentality in the digital assets space.
MiCA aims to bring legal clarity, protect investors from fraudulent actors, and foster innovation in the crypto sector.
The regulations, anticipated to be enforced by 2024, will require firms operating in the EU to obtain licenses to issue, trade, and safeguard crypto assets, tokenized assets, and stablecoins.
Social Media Platforms’ Measures and Ongoing Challenges: While the BEUC report highlights the inadequacies of social media platforms in curbing crypto scams, some platforms have taken steps to combat fraudulent activities.
YouTube, for example, swiftly intervened to prevent the promotion of an XRP cryptocurrency scam on the hacked YouTube channel DidYouKnowGaming.
However, the report points out that the number of creators falling victim to hacks promoted on social media platforms has been on the rise, with larger channels like Linus Tech Tips also facing similar problems.
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