Since many influencers promote shady projects, leading to investors losing their funds, France created a Task Force to reprimand cryptocurrency influencers.
With the recent highs of Bitcoin and other cryptos, several companies are hiring influencers to promote their businesses in the sector.
The big problem is that this partnership can be hidden and deceiving those with less knowledge.
As a result, France created a task force to combat this type of promotion. The team has agents from two French agencies linked to consumer protection and the financial market.
As an example, we can cite the case of Kim Kardashian, who, after promoting a suspicious cryptocurrency, came under the radar of UK authorities.
The cryptocurrency plummeted and left many at their loss, as you can imagine.
The focus on cryptocurrency influencers
Full of followers, many of them with no knowledge of the financial market, social media influencers are ready to promote scams, whether from cryptocurrencies or services around them, in exchange for a small amount of money.
Promises of quick profits, full of reports that have no connection with the present or future of the project they are promoting, hidden partnerships, and the promotion of non-existent relationships are the main lures of these promotions.
Reality TV attendees often promote highly volatile cryptocurrencies and financial products, which are very difficult for newcomers to anticipate fluctuations, and many are now being investigated for hidden advertising.
The French Public Prosecutor’s Office, Bercy, and the AMF have been concentrating their efforts on their actions since December 13.
In other words, while influencers earn thousands of dollars due to their followers, the latter are the only ones taking risks.
After all, these influencers’ lives will remain normal, even if their posts make someone lose everything they have.
Influencers take advantage of a lack of market knowledge.
As published by Le Monde, the Authority of Financial Markets (AMF) of France believes that the greatest danger is the lack of knowledge among young people.
In other words, they think it’s a safe business, but there are many risks.
“Social networks and influencers are the new entry point that has appeared in recent years,” confirms the French Financial Market Regulator (AMF).
Thus, the focus of this new task force is to reprimand these cryptocurrency influencers who promote such content.
Le Monde also highlighted the case of influencer Nabilla Benattia-Vergara, who was sentenced to pay a fine of 20,000 euros for secretly promoting a nebulous Bitcoin exchange.
In Portugal, Brazil, and many other Countries worldwide, everything still looks like an old west when protecting consumer concerns.
Recently, the community accused the influencer Diego Aguiar of manipulating a cryptocurrency game, which practically died after the episode.
If you don’t want to fall for scams like CryptoEats, it is recommended that you do your research and only invest in this market only when you feel comfortable making decisions on your own.