While the US cracks down on crypto companies, the industry faces different hurdles from the European Union (EU) and Australia.
After the FTX collapse, scrutiny of the crypto industry has increased. Particularly in the US, where crypto faces an unprecedented onslaught.
BEUC Wages War Against Social Media Platforms
The Bureau Européen des Unions de Consommateurs (BEUC), or the European Consumer Group, wants to bring regulatory actions against social media platforms for facilitating misleading crypto promotions.
The BEUC filed a complaint against social media platforms such as Instagram, YouTube, TikTok, and Twitter to the European Commission.
It believes that misleading advertisement on these platforms is an unfair commercial practice as it might result in financial losses.
According to Reuters, Consumer Groups in other European countries, such as Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia, and Spain, also supported the complaint. BEUC Director General Monique Goyens said:
“Crypto will be regulated soon… but this legislation does not apply to the social media companies benefiting from the advertising of crypto at the expense of consumers. This is why we are turning to the authorities in charge of protecting consumers to ensure [they] fulfil their duty to protect consumers.”
The Market in Crypto-Asset (MiCA) regulations received unanimous approval from the members of the EU, and the rule will come into effect in July 2024.
Read more about the benefits and drawbacks of crypto regulation here.
Simultaneously, the UK’s Financial Conduct Authority (FCA) will make explicit investor warnings mandatory for crypto promotions.
Commonwealth Bank of Australia Imposes Limit on Crypto Exchanges
According to Bloomberg, the Commonwealth Bank of Australia (CBA) wants to limit payments to digital asset trading platforms to AUD10,000 ($6,663) monthly.
Additionally, it would hold on to transactions to crypto exchanges for 24 hours, or may even decline them. The bank claims to be tackling crypto scams with strict rules.
Australian citizens are the biggest victims of crypto crimes. A Chainalysis crypto crime report showed that Aussies are among the worst hit by giveaway, investment, and non-fungible token (NFT) scams.
The actions by CBA and BEUC follow the US Securities and Exchange Commission’s (SEC) crackdown on crypto companies. This week, the SEC sued two of the largest crypto exchanges, Binance and Coinbase.
Additionally, it labeled crypto assets such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) as securities.
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