French lawmakers have relaxed the proposed strict restrictions in a crypto bill that aims to regulate the excessive impact of social influencers on digital assets. The bill, originally drafted in March, sought to limit influencer marketing to digital asset firms licensed by the country. However, the latest development now allows digital asset firms registered with the Financial Markets Authority (AMF) to engage in influencer marketing.
According to senators and deputies of economic affairs committees, a unanimous agreement was reached on the digital asset influencer bill. The lawmakers added that influencer marketers could only promote financial products and digital assets from firms registered with the AMF. In addition, agents from the AMF and consumer affairs regulators are set to strengthen their regulatory activities to monitor influencers. Penalties, including imprisonment of up to two years, a fine of €300,000, and a possible ban on influencer activity, will be issued for non-compliance with the laws.
Crypto firms use social media platform influencers to raise brand awareness and attract more investors to the crypto asset space. Influencer marketing has become a conventional means of crypto asset business promotion. In 2021, the leading meme coin Dogecoin experienced an explosive price run following tweets from billionaire entrepreneurs, Elon Musk and Mark Cuban. However, due to losses incurred by investors in many crypto projects promoted by social influencers, regulators have tightened regulations around their activities. In March 2023, the US SEC filed a crypto-fraud lawsuit against Justin Sun and eight other celebrities for digital asset market manipulation and celebrity endorsements.
Apart from digital products and services, restrictions to influencers’ marketing also cut across other products like vapes. The country intends to prohibit showing sports betting and gambling products to persons under 18 years soon. As at the time of writing, no crypto firm has been licensed in France, nor are they legally expected to do so. Nonetheless, the national financial regulator, AMF, has registered nearly 60 crypto companies in the country.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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