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BEUC says social media should ban influencers from promoting crypto-assets. BEUC top manager Monique Goyens noted that consumers are increasingly seeing ads on social media where celebrities promise them the chance to get rich quick. Goyens warned: in most cases, these claims are too good to be true, and people risk losing their investments.
Under the bill to regulate cryptocurrencies in the European Union (MiCA), cryptocurrency companies must be licensed to advertise their products and services. At the same time, the BEUC said that additional consumer protections are needed to prevent unfair market practices and to protect users from large financial losses.
“The promotion of cryptocurrencies is everywhere: you hear about them even in peak TV time,” Goyens said, adding that she is no longer a fan of American actor Matt Damon and soccer star Cristiano Ronaldo, who have participated in promotions for crypto exchanges Crypto.com and Binance.
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State consumer protection authorities can impose fines on violators, but a top BEUC executive suggested stiffer penalties. Last year, TikTok already promised to comply with EU requirements after BEUC complained about hidden marketing and aggressive advertising. BEUC’s Agustín Reyna added that social networks use different approaches to moderating content. However, if they do not stop publishing misleading material, all cryptocurrency advertising should be banned altogether for platforms.
Recall that this week the UK’s Financial Conduct Authority (FCA) finalized rules on the promotion and advertising of crypto-assets in the country, which will take effect on October 8.