The United States Securities and Exchange Commission (SEC) has fined influencer and entrepreneur Kim Kardashian $1.26 million (a similar figure in euros) for promoting a crypto asset on her Instagram account without disclosing that it was a paid ad. . As part of the sanction, Kardashian agreed to continue to cooperate with the SEC’s investigation, although the payment does not imply admission or denial of the facts investigated. Similarly, it will not promote other crypto assets for the next three years.
According to investigations by the United States financial regulator, Kim Kardashian shared the EMAX token offered by EthereumMax on her Instagram account with a link to her website to purchase it. The influencer was paid $250,000 for it, but at no point indicated that it was advertising.
“This case is a reminder that when celebrities or ‘influencers’ endorse investment opportunities, including crypto-asset securities, that doesn’t mean those investment products are right for everyone,” SEC Chairman Gary Gensler said. Under current North American securities regulations, anyone promoting crypto assets must disclose who they paid for it and how much.
Relying on celebrities to promote oneself to a community that is not specialized in financial investment is a common strategy in the crypto sector. In Spain, the National Securities Market Commission (CNMV) has also increased its oversight of cryptocurrency advertisements by relevant media representatives, whether paid or not.
One of the regulator’s recent notices in this regard was against a measure aimed at promoting cryptocurrencies to young people. It was hosted by Cristina Pedroche and La Ruleta de la Fortuna host Jorge Fernández, who were eventually removed after the CNMV alert.
Source: El Diario