Kim Kardashian is criticized by the head of the UK Financial Conduct Authority (FCA), for promoting a shady cryptocurrency on Instagram.
As reported by TheCryptoBasic in June Popular reality television personality, and actress Kim Kardashian promoted a shady project through her social networks, called Ethereum MAX or ETHMAX Protocol.
Back then Kardashian uploaded two Instagram stories, and asked her fans if they were “into crypto”. The celebrity influencer shared a story about EthereumMax with her 228 million Instagram followers.
Charles Randell, chairman of the FCA, strongly criticized Kim Kardashian efforts to push the dubious project in a keynote speech delivered on Monday night at Cambridge International Symposium on Economic Crimes.
“Kim Kardashian recently paid to ask 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.
Despite this, the hype around them generates a powerful fear of missing out from some consumers who may have little understanding of their risks. There is no shortage of stories of people who have lost savings by being lured into the cryptobubble with delusions of quick riches, sometimes after listening to their favorite influencers, ready to betray their fans’ trust for a fee.
At the FCA we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Scheme. If you buy them, you should be prepared to lose all your money.”
Randall concluded that there were more rules needed to bring transparency in crypto. He stated that it would require a lot of careful thinking to create a regulatory system for crypto.