The European Consumer Organization (BEUC) is concerned about deceptive cryptocurrency advertisements on social media sites. These deceptive cryptocurrency advertisements are widely shared on social media platforms such as Instagram, YouTube, TikTok, and Twitter.
There are numerous dangers linked with such advertisements, particularly when it comes to the younger generation. This could result in significant financial loss. A recent analysis produced by the consumer rights group highlighted the potential issues related to cryptocurrency promotion.
According to research done by BEUC, many consumers are unaware of the risks inherent in the DeFi industry. Moreover, the most popular platforms are often important actors in this type of deceptive advertising.
Notably, the research highlights the infringement of advertising rules imposed by various platforms. For example, Facebook has been discovered to include crypto advertisements that skirt laws.
The same is true for Twitter, whose prohibition is ignored by social media influencers. Some high-profile personalities, like Elon Musk, have endorsed cryptocurrencies such as Dogecoin (DOGE).
🚨📺 European watchdog targets Instagram, YouTube, TikTok, and Twitter for exposing consumers to serious financial harm.
— Walletor (@walletorapp) June 8, 2023
The research also emphasizes the importance of finance influencers that specialize in this form of promotion. They are extremely harmful to younger audiences who may not understand the hazards associated with investing. Our article will teach you more about investing safely.
While national regulators have made attempts to counteract deceptive cryptocurrency promotions, there are still problems. The Consumer Protection Cooperation Network (CPCN) has been identified as the institution in charge of overseeing the implementation of these policies. This is very important for the future of crypto advertisements and many social media platforms facilitating this type of promotion.
Finally, the BEUC analysis offers light on the frequency of false cryptocurrency marketing on popular social media sites. The actions of the watchdog are aimed at protecting customers from potential financial concerns. To ensure appropriate crypto advertising, it asks for a coordinated approach encompassing authorities, platforms, and influencers.