Tuesday, September 07, 2021
Promotes dubious cryptocurrency
British financial regulator reprimands Kim Kardashian
Influencers often advertise various products – in some cases without having to deal with them beforehand. Kim Kardashian recently advertised a speculative cryptocurrency among her millions of followers on Instagram. UK authorities fear that scammers could take advantage of this.
The British financial regulator has been critical of the advertising of social media stars for cryptocurrencies and has called for strict regulation. Life is increasingly taking place online and “we cannot allow online companies to practice practices that we would not tolerate in other companies,” said the chief financial officer (FCA), Charles Randell. What is needed are rules that protect people from investment fraud and tricks.
The FCA boss mainly referred to an advertising contribution by US reality star Kim Kardashian on the Internet service Instagram. Kardashian had left a post declared as advertising in an Instagram story in June and called on her fans to join the “Ethereum Max community”. Kardashian has over 200 million followers on Instagram. However, Ethereum Max has nothing to do with Ethereum, the second largest crypto currency after Bitcoin, emphasized Randell. Rather, it is a speculative digital currency that was recently founded by strangers. He does not know whether it is a fraud.
However, social media stars are repeatedly paid by fraudsters to spread their concerns. Kardashian duly declared her entry as advertising, but was not obliged to explain the background to Ethereum Max, Randell complained. At the same time, she had reached an immensely large audience with her contribution. Experts repeatedly warn of possible high losses in cryptocurrencies and the susceptibility to fraud and hacker attacks.