The French Senate’s Committee on Economic Affairs has accepted an amendment to a pending law on crypto marketing. With this amendment, cryptocurrency firms registered with France’s Financial Markets Authority (AMF) could advertise and promote their businesses using social media influencers.
Ultimately, this could open up new marketing opportunities for these companies and promote greater acceptance of cryptocurrencies among the general population.
Not a Law Yet
However, it is crucial to remember that this amendment must still be completed and go through additional levels of ratification before becoming law.
Additionally, even if this amendment is approved, it is likely that there will still be regulations and guidelines in place to ensure that any crypto promotions are fair and accurate and do not mislead consumers.
Highlights of the Initial Proposal
Notably, the initial bill demanded what amounted to an outright prohibition on influencer marketing for the crypto business in France. Its language restricted influencer advertising to businesses that have an AMF license, a requirement that no crypto company currently satisfies.
Additionally, the proposal states that anyone caught breaking the rules might receive a two-year prison sentence and a 30,000 euro fine.
Lawmakers Concerned About Users’ Safety
Overall, the proposed ban on influencer marketing for crypto demonstrates the French government’s commitment to safeguarding consumers. Additionally, lawmakers seek to ensure fairness and transparency in the market, prevent illegal activities, and align with international regulations.
Interestingly, French lawmakers are not the only ones concerned about using influencers for crypto advertisement. Just recently, regulators in the UK have developed standards for influencers by creating a graphic visual depiction of facts and information to direct their judgment whenever they are given the option to promote any financial product.
France Recognized as a Global Leader in the Industry
France has made substantial contributions to the blockchain industry via its legislative framework, start-up environment, and corporate adoption. Markedly, these efforts have helped France establish itself as a leader in the blockchain business.
Recently, the French National Assembly voted in favor of rules that will simplify licensing procedures and regulations. According to the proposal, crypto firms in France would be compelled to observe new conflicts of interest and consumer protection standards this year.