French Senate Considers Allowing Influencers To Promote Crypto
- According to proposals agreed upon by the French Senate’s Economy Committee, social media influencers could promote the goods of registered crypto firms.
- The proposal would enable cryptocurrency corporations to pay influencers for publicity.
- Previously, the National Assembly took a tougher stance.
The French National Assembly is attempting to essentially outlaw social media crypto marketing, while a crucial Senate committee seems to support softer limitations.
According to ideas agreed upon by the French Senate’s Economy Committee on Wednesday, social media influencers would be able to advertise goods of registered crypto companies such as Binance.
The new translation would enable corporations registered with France’s Financial Markets Authority (AMF) to employ influencers for their goods, according to a translation given by Bing:
“The current wording is more restrictive than the existing provisions in the Consumer Code, since it excludes the possibility for digital asset service providers (PSAN) registered with the Financial Markets Authority (AMF) to use commercial influence. Consequently, this amendment introduces this possibility for PSANs registered or approved with the AMF.”
Senators seem to prefer less stringent rules than their colleagues in Paris’ National Assembly, which voted in March to virtually prohibit crypto advertisements by social media celebrities.
The measure in issue originally called for what amounted to an outright prohibition on influencer promotion for the crypto company in France. Its language restricted firms from engaging in influencer advertising to those regulated by the AMF, a requirement that no crypto company presently satisfies.
The measure, which was approved in committee and will be debated in the Senate plenary next week, would enable cryptocurrency firms to pay for publicity via influencers provided they are registered with or have a license from authorities.
According to an explanatory note by lead legislator Amel Gacquerre of the Centrist Union party, the Senate proposal matches the measure with the current French Consumer Law. The measure also prohibits influencers from promoting cosmetics and gaming.
The National Assembly earlier adopted a harder stance, stating that influencers should only be permitted to promote items from AMF-licensed crypto enterprises.
All crypto companies operating in France are obliged by law to register with the AMF. So far, none have received the necessary licensing to legally hire influencers to promote their products in the country.
Hundreds of companies, including Binance, Bitstamp, and eToro, have registered with the authority, confirming that they fulfill money laundering and governance standards.
The amendment’s modification in terminology would abolish the license requirement, allowing organizations that are just registered with the AMF to pay influencers for social media advertising.
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