{"id":11814,"date":"2021-09-06T23:54:06","date_gmt":"2021-09-06T23:54:06","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/kim-kardashian-called-out-by-uk-regulator-for-pumping-crypto-token-that-could-harm-investors\/"},"modified":"2021-09-06T23:54:06","modified_gmt":"2021-09-06T23:54:06","slug":"kim-kardashian-called-out-by-uk-regulator-for-pumping-crypto-token-that-could-harm-investors","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/kim-kardashian-called-out-by-uk-regulator-for-pumping-crypto-token-that-could-harm-investors\/","title":{"rendered":"Kim Kardashian Called out by UK Regulator for Pumping Crypto Token That Could Harm Investors"},"content":{"rendered":"

Kim Kardashian has been singled out by the U.K.\u2019s Financial Conduct Authority (FCA) for pumping a crypto token that could put investors at risk. With 250 million Instagram followers, the FCA chairman said that Kardashian\u2019s cryptocurrency promotion \u201cmay have been the financial promotion with the single biggest audience reach in history.\u201d<\/strong><\/p>\n

Kim Kardashian Promotes Crypto Token That Could Put Investors at Risk, Said Regulator<\/h2>\n

The chairman of the U.K.\u2019s Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), Charles Randell, singled out celebrity Kim Kardashian in a new warning about crypto scams. Kardashian is an American media personality, socialite, model, and businesswoman. She married the pro-bitcoin rapper Kanye West<\/a> but filed for divorce earlier this year.<\/p>\n

In his speech Monday at the Cambridge International Symposium on economic crime, Randell discussed \u201cThe risks of token regulation\u201d and the \u201crules which protect people from investment fraud and scams.\u201d<\/p>\n

When detailing how online platforms can give advice about scams to help investors avoid making bad decisions, he said: \u201cWe\u2019ll work with online platforms who want to protect both consumers and their own brands \u2013 and we\u2019ll call out those who aren\u2019t playing their part and are destroying the trust of their users.\u201d Randell continued:<\/p>\n

Which brings me on to Kim Kardashian. When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by \u2018joining the Ethereum Max Community,\u2019 it may have been the financial promotion with the single biggest audience reach in history.<\/p>\n

While acknowledging that Instagram\u2019s rules required Kardashian to disclose that her post<\/a> was an ad, Randell argued that \u201cshe didn\u2019t have to disclose that Ethereum Max \u2014 not to be confused with Ethereum \u2014 was a speculative digital token created a month before by unknown developers \u2013 one of hundreds of such tokens that fill the crypto-exchanges.\u201d<\/p>\n

The head of the FCA opined:<\/p>\n

Of course, I can\u2019t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.<\/p>\n

Despite all the risks, Randell said that \u201cthe hype around them generates a powerful fear of missing out [FOMO] from some consumers who may have little understanding of their risks.\u201d<\/p>\n

<\/p>\n

Randell proceeded to discuss regulations, stating that \u201cIt will take a great deal of careful thought to craft a regulatory regime which will be effective in the decentralized world of digital tokens.\u201d<\/p>\n

He elaborated that \u201cit\u2019s clear that legislators need to consider three issues.\u201d The first is \u201chow to make it harder for digital tokens to be used for financial crime.\u201d The second is \u201chow to support useful innovation,\u201d and the third is \u201cthe extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.\u201d<\/p>\n

The FCA chairman described:<\/p>\n

In the meantime, it appears to me that there are two cases where regulators should have the powers to take action to reduce the potential harm to consumers from purely speculative tokens, not least to ensure that trust in the overall technology isn\u2019t destroyed by bad actors in this space.<\/p>\n

The first case is crypto promotions, he said, reiterating that \u201ca surprisingly large proportion of people buying these speculative tokens seem to think they may be regulated already.\u201d He then warned that \u201cThe second issue is the risk of contagion of the regulated business of authorized firms by unregulated activities in digital tokens.\u201d<\/p>\n

What do you think about the FCA chief calling Kim Kardashian out for pumping a crypto token? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nFeatured, fca crypto scams, Kim Kardashian, Kim Kardashian crypto, Kim Kardashian crypto scams, Kim Kardashian cryptocurrency, Kim Kardashian ethereum, Kim Kardashian ethereum max, Kim Kardashian fca, Kim Kardashian West<\/p>\n","protected":false},"excerpt":{"rendered":"

Kim Kardashian has been singled out by the U.K.\u2019s Financial Conduct Authority (FCA) for pumping a crypto token that could put investors at risk. With 250 million Instagram followers, the FCA chairman said that Kardashian\u2019s cryptocurrency promotion \u201cmay have been the financial promotion with the single biggest audience reach in history.\u201d Kim Kardashian Promotes Crypto…<\/p>\n","protected":false},"author":0,"featured_media":11815,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11814"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11814"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11815"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}