The UK’s financial regulator was not happy about Kim Kardashian’s promotion of the cryptocurrency Ethereum Max. Charles Randell is the chairman of the UK’s Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR). He mentioned her name during a conversation about scams in the crypto market.
Charles Randell wants to crack down on the promotion of scams
Randell gave a speech at the Cambridge International Symposium on Economic Crime last week. He talked about the risks of symbolic regulations and regulations that protect people from investment fraud and scams. During the talk, he refers to the ads Kim Kardashian has run for Ethereum max and says the influencer’s cryptocurrency promotion on Instagram has reached the largest audience ever with 250 million followers.
To combat this behavior, the head of the FCA explained how websites can provide advice on fraud and scams that can help investors avoid making unwise decisions. SA wants to work with online platforms that want to protect both consumers and their businesses. He hopes to reprimand platforms that do not actively contribute and undermine the trust of their customers.
Influencers get paid regularly to promote pump and dumps
Randell blames Kardashian for potential losses investors could have made if they had listened to her ads, “That brings me to Kim Kardashian. When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by joining the Ethereum Max Community, it was perhaps the financial promotion with the largest audience reach in history.”
Randell could not say whether the token Kardashian was promoting was a scam. However, he pointed out that scammers regularly pay influencers on social media to help them pump and dump new cryptocurrencies based on speculation, or even promote fictitious coins that do not even exist.