FCA Criticizes Kim Kardashian for Irresponsible Crypto Promotion
Table of contents
Kim Kardashian Under Fire for Irresponsible Crypto Promotion
Speaking at the Cambridge International Symposium on Economic Crime, Randell accused Kardashian and other influencers hyping crypto of encouraging “delusions of quick riches.”
He outlined that Kardashian’s recent promotion of Ethereum Max -- not to be confused with Ethereum cryptocurrency -- was rightly labeled as an advertisement.
Regarding Ethereum Max, the FCA chair clarified that he wasn’t certain of its legitimacy. He then added:
Randell opined that social media hype “generates a powerful fear of missing out [FOMO]” among people who don’t have enough knowledge about cryptocurrencies. This is a worrying trend for regulators since 14% of the UK’s crypto users have admitted to borrowing money for digital asset purchases, which Randell believes increases their “exposure to loss.”
FCA Chairman Dwells On Regulations for Digital Tokens
While discussing the shortcomings of cryptocurrencies, Randell emphasized that regulations for such assets would require a “great deal of careful thought.”
He explained that any framework for the industry would have to consider three issues: “how to make it harder for digital tokens to be used for financial crime”, “how to support useful innovation”, and “the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions.”
In the meantime, Randell suggested that regulators should focus on two areas where rules are still enforceable. The first is crypto promotions and the second is the “risk of contagion of the regulated business of authorized firms by unregulated activities in digital tokens.”