The French parliament has proposed a bill to ban influencers from promoting certain financial products and services, such as crypto, on electronic platforms.
The new amendment, Bill no.790, seeks to protect consumers from falling prey to scams and excesses by influencers on social media.
France Goes After Crypto Promoters
The amended law, which is yet to be passed, prohibits commercial influencers from directly or indirectly marketing health products, gambling, and video games using similar mechanisms mentioned above from unlicensed distributors.
The proposed bill was initially filed on March 17, 2023, by Stéphane Vojetta of President Emmanuel Macron’s ruling Renaissance party and opposition socialist Arthur Delaporte and reviewed by the Economic Affairs Committee on March 22, 2023.
The committee voted in favor of the amendment, which bans influencers from advertising investments in virtual assets, fungible and non-fungible tokens (NFTs), or intangible properties that pose risks of loss to consumers.
Suppose the House of Assembly and Senate accept the proposed rule. In that case, only operators fully registered with the Autorité des Marchés Financiers (AMF), a French regulatory agency overseeing the country’s financial markets and the market infrastructures’ rules, will be eligible to run crypto ads in the nation.
The bill revealed that no crypto companies are licensed under the French Financial Markets Authority despite receiving approval to operate as a digital asset service provider in the country, thereby not qualifying to advertise digital assets to customers in the region.
Two Years in Prison and $32,600 Fine
France also recently voted to adopt the European Union’s crypto regulation (MiCA), noting that it will toughen its rules for companies entering the country. For already registered firms such as Binance, CryptoCom, and Bitstamp, they will be required to apply for additional verification.
If passed, violators could face two years in prison with a fine of £30,000 ($32,600).
France will also join other European countries, such as the United Kingdom and Belgium, in working to place stringent rules for crypto promotions and advertising by internet influencers.
Earlier this week, the Belgian Financial Services and Markets Authority (FSMA) reportedly toughed out its crypto promotion rules requiring digital asset firms to include a disclaimer in their advertisements as thus: “The only guarantee in crypto is a risk.”
The move is part of the country’s effort to educate people involved in digital assets to understand the risks associated with trading crypto.
