France Sets Up Task Force To Combat Crypto Influencers – Cryptovibes.com – Daily Cryptocurrency and FX News
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Several firms are hiring influencers aiming to promote their businesses after the recent high of bitcoin and the other cryptos. The main challenge is that these partnerships can be undertaken in a concealed manner, and cheating those with little knowledge about cryptos.
As a result, France has decided to set up a task force to fight promotions by the influencers. This team consists of agents from two French agencies linked to the consumer protection and the country’s financial markets.
The best example of that case is Kim Kardashian. As reported previously, the popular TV personality, model, socialite, producer, businesswoman, and actress promoted a shady project through her social network platforms, known as Ethereum MAX.
The celebrity influencer shared some story about EthereumMax with her 228 million Instagram followers. Analysis showed that around 30% of the crypto users were exposed to Kardashian’s Instagram advertisement that promoted “Ethereum Max.” with such a major push to a scam project, the chairman of the FCA, Charles Randell, strongly criticized Kim Kardashian’s efforts to push the dubious project in a keynote speech delivered at Cambridge International Symposium on Economic Crimes.
Focus On Crypto Influencers
Several top social networks influencers have thousands of followers who have little or no knowledge of the financial markets. These are the ready recipe to promote scam cryptocurrency projects. The promises of successful withdrawals, quick profit, and hidden partnerships are the main lures of the promotions.
The French body that is responsible for consumer protection and fraud prevention, DGCCRF, stated:
“Influencers often promote highly volatile cryptocurrencies and financial products, and it becomes very difficult for newcomers to anticipate fluctuations.”
While the influencers earn thousands of dollars as a result of the number of followers they have, the followers are the only ones who are taking the risks. The influencers’ lives remain normal even if their posts make someone lose everything they have.
Influencers exploit their followers’ lack of market knowledge. As highlighted by Le Monde, France’s, Financial Markets Authority (AMF) thinks that the biggest danger is the lack of knowledge that exists among the young people who follow these influencers blindly.
“Social networks and influencers are the new gateways that have emerged in recent years. In this way, the target is a younger audience, who have very little knowledge of financial markets.”
The primary focus of this new task force is to reprimand the crypto influencers who engage in promoting deceptive content. Le Monde also commented on the case of influencer ‘Nabilla Benattia-Vergara’, who was ordered by the court to pay a fine of 20,000 euros for secretly promoting a phony bitcoin exchange.
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