Celebrities Must Avoid Guilty Pleasures for Inexperienced Crypto Investors

<p>Mark Taylor is the CEX.IO cryptocurrency exchange's Head of Financial Crime.</p> <p>Influencers and celebrities have been progressively pushing crypto initiatives over the last few months. While many work with well-known organisations, it's not uncommon to see well-known persons advertise dubious digital asset services via paid posts.</p> <p>Kim Kardashian, a US celebrity, made quite a stir in June when she pushed the Ethereum Max cryptocurrency project to her more than 250 million Instagram followers.</p> <p>As a result, in a recent speech, UK Financial Conduct Authority (FCA) chair Charles Randell argued that Kardashian's post could be the "financial promotion with the single largest audience reach in history," while cautioning consumers about the growing risks associated with influencer advertising in the cryptocurrency industry.</p> <p>Simultaneously, Randell urged for immediate action to govern crypto project advertising, with a particular emphasis on social media marketing and influencer promotions, in order to remove fraudulent conduct and protect investors.</p> <p>As crypto sector participants at CEX.IO, we believe it is entirely reasonable for the FCA to monitor social media influencers. Apart from their emotive value, professional traders may not pay much attention to celebrity pronouncements. On the other side, consumers may feel forced to follow the advice contained in such ads. And the FCA's role is to safeguard the consumer.</p> <p>Given the amount of time people spend on social media, it frequently serves as a source of truth when it comes to personal finance decisions.</p> <p>And, when someone with a sizeable following advocates a digital asset or a strategy, even an ad disclosure (as in Kim's case) may be insufficient to get others to think critically about dangers.</p> <p>As a result, it is reasonable for the FCA to take a strong stance in favour of (or demand) greater openness in the cryptocurrency market. That means that celebrities who accept advertising arrangements must consider