Influencers such as Kim Kardashian are trying to entice consumers into cryptocurrency with false promises of easy money, according to the UK's financial regulator in a speech on Monday
Influencers like Kim Kardashian are tempting consumers into cryptocurrency with false promises of easy money says the UKs financial regulator in a speech on Monday. Charles Randall, Chair of the Financial Conduct Authority stated that regulators should get the power to protect consumers and if people are ready to buy crypto tokens, then “you should be prepared to lose all your money.” He stated.
“When she was recently paid to asl her 250 million Instagram followers to speculate on crypto tokens by ‘joining the Ethereum Max Community,’ it may have been the financial promotion with the single biggest audience reach in history,” Randell said. Even though Kardashian stated that it was “a #AD,” Randall believed that she “didn’t have to reveal” that she trying to promote “A speculative digital token created a month before by unknown developers one of hundreds of such tokens that fill the crypto-exchanges.”
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle,” Randall said. “We simply don’t know when or how this story will end, but as with any new speculation it may not end well.” The FCA called online platform like Facebook Inc., Microsoft Corp., Twitter Inc. and TikTok to join Google for trying to stop promoting advertisements for financial products which has not been authorized by FCA. Kardashian’s publicist and a spokesperson didn’t release a statement and according to Randall she hasn’t done anything seriously wrong.
The FCA doesn’t handle the types of tokens stated by Randell, but it has published a list of unregistered crypto exchanges that they think are operating in the U.K to help consumers avoid using them. During last month the regulator brought down one of the crypto trading firms after it failed to give the necessary information about its business operations, corporate structure and ways that retail consumers used its products.