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If you’re looking for sound and unbiased financial advice on investing in cryptocurrencies, then social media “influencers” should not be your first port of call.
In something of an EU first, Spain moved to nip such an encounter in the bud on Monday, with its national securities market commission being given the power to regulate crypto advertising. The measures, which take effect in a month’s time, require influencers and their sponsors to pre-notify authorities of some posts and to warn of crypto’s risks or face fines. Singapore also placed new restrictions on crypto advertising on Monday.
Spain’s new powers come after the watchdog clashed in November with footballing legend Andrés Iniesta over his paid promotion, lacking the usual risk warnings, of Binance, the world’s biggest cryptocurrency exchange.
In the US, a class-action lawsuit filed this month claims reality-TV star Kim Kardashian and other celebrities, including boxer Floyd Mayweather and former NBA player Paul Pierce, helped inflate the price of one cryptocurrency as part of a scheme that enriched its backers at the expense of ordinary investors.
It alleges the backers of EthereumMax used the inrush of cash from Kardashian’s followers to sell a significant amount of the tokens at a profit, pocketing their gains before the price cratered.
