ARTICLE
16 September 2021

Alberts Sheds Light As FCA Reacts To Crypto Instagram Promotion

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Partner and FinTech Group co-chair Jeffrey Alberts sat with the Wall Street Journal to discuss the ripple effect of an Instagram post shared by Kim Kardashian in which the billionaire influencer promoted "the Ethereum Max Community."
United States Technology

Partner and FinTech Group co-chair Jeffrey Alberts sat with the Wall Street Journal to discuss the ripple effect of an Instagram post shared by Kim Kardashian in which the billionaire influencer promoted "the Ethereum Max Community." According to CoinDesk, "Ethereum Max (EMAX) is an ERC-20 token on the Ethereum blockchain. [...] An ERC-20 requires very little technical skill to create [...], and they take advantage of functions of the Ethereum blockchain itself." The social media post was viewed by over 210 million followers and sparked a response from the Financial Conduct Authority.

According to the Wall Street Journal, "Charles Randell, head of the U.K.'s Financial Conduct Authority, said Ms. Kardashian's post might 'have been the financial promotion with the single biggest audience reach in history.' But he criticized the noted ad, saying it wasn't required to tell followers that EthereumMax was a month-old speculative digital token." The article goes on to state:

But the speech suggests that the FCA is seeking to expand its authority in regulating the growing cryptocurrency sector, and highlighting Kim Kardashian's case supports that effort, said Jeffrey Alberts, a partner at law firm Pryor Cashman LLP in New York.

"By identifying this type of case, which politicians and voters would be aware of, that increases the chance that they would be given that authority in expanding their regulation," Mr. Alberts said. The speech indicates that the FCA may be seeking to have authority in protecting investors from speculative tokens, Mr. Alberts added.

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