Kim Kardashian faces criticism from UK official over crypto announcement

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4 hours ago

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A message appeared on Kardashian’s Instagram account suggesting the head of the UK’s Financial Conduct Authority had an advertisement for cryptocurrencies

Reality TV star Kim Kardashian has been criticized by the head of Britain’s Financial Conduct Authority for promoting an untested cryptocurrency on social networking site Instagram.

Authority chairman Charles Randall said Kim “asked his 250 million followers to trade cryptocurrencies” via an announcement on his Ethereum Max account.

Randall described the coin he says Kardashian is promoting as “a circulating digital currency launched by unknown developers a month ago.”

Britain’s top financial official also accused social media influencers of promoting “the get-rich-quick illusion.”

This statement came when Randall spoke at the Cambridge International Cybercrime Forum.

The UK regulator’s chief said the post Kardashian posted on her Instagram account, which she noted as being classified as an advertisement, said it was “aimed at the broadest audience in history.” promote a financial product.

Randall pointed out that the Ethereum Max coin, promoted by Kardashian’s Instagram account, is not the well-known Ethereum cryptocurrency.

But when he said, “I can’t determine if this cryptocurrency (Ethereum Max) is a scam or not.”

But social media influencers get paid from time to time by scammers to help them launch new tradable cryptocurrencies. Some influencers even promote these types of currencies which don’t exist at all, Randall said.

The BBC has reached out to Ethereum Max and the Kardashians for comment on the FCA chief’s comments.

Randall said that 2.3 million Britons hold cryptocurrencies, 14% of whom use credit cards to purchase them, “which increases the risk of loss,” he said.

He pointed out that the British Financial Conduct Authority has repeatedly warned against buying “traded cryptocurrencies” whose trade is not regulated by FCA regulations or covered by any clearing scheme.

And the head of the commission warned, “If you buy it, you should be prepared to lose all your money.

Randall said the possibility of imposing controls to promote this type of asset has been discussed to combat consumer misconceptions that their money is safe and the “continuous deceptive advertising strategy of some crypto companies.” .

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