Kim Kardashian is asked by the British supervisory authority to pump crypto tokens that could harm investors-Bitcoin News
Kim Kardashian is asked by the British supervisory authority to pump crypto tokens that could harm investors-Bitcoin News
Kim Kardashian was selected by the British Financial Conduct Authority (FCA) because he pumped a crypto token that could endanger investors. With 250 million Instagram followers, the FCA chairman said that Kardashians cryptocurrency advertising "could have been financial advertising with the largest individual audience range in history".
Kim Kardashian promotes crypto tokens that could endanger investors, said the supervisory authority
The chairman of the British Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), Charles Randell, emphasized Kim Kardashian in a new warning of crypto fraud. Kardashian is an American media personality, celebrities, model and businesswoman. She married the Pro-Bitcoin rapper Kanye West but the divorce at the beginning of the year submitted.
In his speech on Monday at the Cambridge International Symposium on economic crime, Randell discussed "the risks of token regulation" and "rules that protect and fraud people.
that brings me to Kim Kardashian. When it was recently paid to ask for her 250 million Instagram followers to speculate on crypto tokens by "joining the Ethereum Max Community", this may have finished financial advertising with the largest individual audience range in history.
Although he recognizes that Kardashian is opened according to the rules of Instagram The head of the FCA said:
Of course I cannot say whether this special token is a fraud. But social media influencers are routinely paid by fraudsters to help them pump and dispose of new tokens on their backs of pure speculation. Some influencers advertise coins that turn out to be not existing at all.
Despite all the risks, Randell said that "the hype around them creates a strong fear of missing something". [FOMO] from some consumers who may have little understanding of their risks. ”
Randell continued to discuss regulations and said: "It will require a lot of careful consideration to create a regulatory system that is effective in the decentralized world of digital tokens."
He stated that "it is clear that the legislator must take three aspects into account". The first is "how it becomes more difficult to use digital tokens for financial crime". The second is "how to support useful innovations", and the third party is "to what extent consumers should be free to buy unregulated, purely speculative tokens and to take responsibility for their decisions".
The FCA chairman described:
In the meantime, there seem to be two cases in which regulatory authorities should have the authorities to take measures in order to reduce the possible damage to consumers by purely speculative tokens, not least to ensure that trust in the overall technology is not destroyed by evil.
The first case is crypto advertising campaigns, he said, repeating that "a surprisingly large proportion of the people who buy these speculative tokens seem to believe that they may already have been regulated". He then warned: "The second problem is the risk of contagion of the regulated business of authorized companies through non -regulated activities in digital tokens."
What do you think that FCA boss Kim Kardashian challenges about the pumping of a crypto token? Let us know in the comment area below.
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