French Lawmakers Effectively Stop Influencers From Promoting Crypto
- French lawmakers will ban media influencers from promoting cryptocurrency.
- The bill comes as the concept of crypto is being expanded through social networking platforms.
- However, France is still a country with opportunities for crypto companies to choose from.
A bill approved by parliamentarians’ top committee would prohibit French social-media influencers from promoting unauthorized cryptocurrency items.
The popularity of cryptocurrency investments has risen dramatically in recent years. Advertisements for such cryptocurrencies, which also target French consumers, often use a diverse set of distribution methods, including new channels and social networks like TikTok and Instagram.
The losses sustained by customers who invested in cryptocurrencies in late 2021 and early 2022 prompted the French regulator to take measures to better warn consumers about the dangers connected with cryptocurrencies.
The National Assembly’s Economy Committee approved legislation to prohibit well-known individuals from promoting dangerous items or blatant fraud on platforms like Instagram and YouTube.
The committee agreed to an amendment that prohibits internet influencers from directly or promoting unlicensed providers’ crypto-asset services.
Since no crypto firms are approved by the French Financial Markets Authority, the move effectively prohibits influencer marketing. Violators risk two years in prison and a 30,000 euro fine.
The proposed bill, sponsored by Stéphane Vojetta of President Emmanuel Macron’s governing Renaissance party and opposition socialist Arthur Delaporte, would classify digital assets alongside dangerous financial items, gambling, and drugs.
“The promotion, direct or indirect, of the following services, offers and products is prohibited, with some exceptions, for persons exercising commercial influence by electronic means,” the bill read.
The Belgian Financial Services and Markets Authority (FSMA) has announced a new law limiting the sale of virtual currencies to Belgian customers.
If the Assembly and Senate pass the bill, France will join nations like the United Kingdom and Belgium in attempting to restrict the advertising of cryptocurrency goods.
Despite this, France is still a country that is quite open to cryptocurrencies, as companies like Binance, Crypto.com or, most recently, Circle has decided to expand their business into this market.
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