While the US is cracking down on crypto companies, the industry is facing various hurdles from the European Union (EU) and Australia.
After the collapse of FTX, scrutiny of the cryptocurrency industry increased. Particularly in the United States, where cryptocurrency is facing an unprecedented onslaught.
The Bureau Européen des Unions de Consommateurs (BEUC), or European Consumer Group, wants to take regulatory action against social media platforms for facilitating misleading cryptocurrency promotions.
BEUC has filed a complaint against social media platforms such as Instagram, YouTube, TikTok and Twitter with the European Commission.
It believes that misleading advertising on these platforms is an unfair business practice as it may lead to financial losses.
according to ReutersConsumer groups in other European countries, such as Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain, have also upheld the complaint. Monique Gowens, Principal of the British University in London, said:
“Cryptocurrencies will soon be regulated…but this legislation does not apply to social media companies that benefit from advertising cryptocurrencies at the expense of consumers. This is why we turn to the authorities responsible for protecting consumers to make sure they fulfill their duty to protect consumers.”
The Market in Crypto Assets (MiCA) Regulation has received unanimous approval from EU members, and the rule will come into force in July 2024.
Read more about the advantages and disadvantages of cryptographic regulation here.
At the same time, the UK’s Financial Conduct Authority (FCA) will make explicit investor warnings mandatory for promoting cryptocurrencies.
The Commonwealth Bank of Australia imposes restrictions on cryptocurrency exchanges
according to bloombergThe Commonwealth Bank of Australia (CBA) wants to limit payments on digital asset trading platforms to A$10,000 ($6,663) per month.
In addition, you will hold on to transactions on the cryptocurrency exchange for 24 hours, or you may reject them. The bank claims that it deals with cryptocurrency scams with strict rules.
Australian citizens are the biggest victims of crypto crime. Chainalysis cryptographic crime a report It showed that Australians are among the hardest hit by giveaways, investing, and non-fungible token (NFT) scams.
The actions taken by the CBA and BEUC follow the tough actions taken by the US Securities and Exchange Commission (SEC) against crypto companies. This week, the Securities and Exchange Commission (SEC) filed a lawsuit against two of the largest cryptocurrency exchanges, Binance and Coinbase.
In addition, crypto-assets such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) are classified as securities.
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