The European Union (EU) has confirmed the arrival of the Digital Services Act which aims to curb online advertisements and also to “promptly remove illegal products, services or content after they are reported”. However, with the arrival of this new law, which targets large tech companies, will digital assets be affected?
EU Could End Crypto Promotion With New Law
The future of cryptocurrencies in the EU remains uncertain, and the entry into force of the Digital Services Act (DSA) could harm budding blockchain projects in the country and save investors from pump scams and crypto dump. According to official releasethe law will force tech giants like Google and Meta to scan their platforms for illegal content and eradicate such promotional campaigns.
With the DSA, these companies won’t be able to algorithmically mine user data and personalize their ads based on users’ gender, race, or religion. In addition, these companies will not be able to target children with their advertisements in the EU. “Dark patterns” or tactics used to push people towards a certain product will also be banned for these platforms.
Recently, there has been a huge increase in the promotion of crypto pump and dump schemes as well as fake crypto projects. Even notable influencers like Jake Paul, Nick Carter, Soulja Boy and Lil Yachty promoted sh*tcoins and pump-and-dump projects. The DSA will level the playing field for investors looking to enter the crypto world.
Are other countries preparing to adopt similar laws?
Similar measures have also been taken by companies and countries. Kripteu Magazine recently captured this TikTok has announced a ban on crypto ads for content creators. On the other hand, meta-platforms got in trouble with the Australian Competition and Consumer Commission (ACCC) suing Meta for allowing numerous fraudulent advertisements on its platforms.