Legislation Introduces in French Senate to Permit Cryptocurrency Advertising by Social Media Influencers
The French Senate’s Economic Affairs Committee has agreed to amend pending legislation that will allow registered cryptocurrency firms to recruit social media influencers for promotional and advertising purposes.
The new wording will enable the French Financial Markets Authority (AMF) to allow companies to hire influencers for their products.
Some standards will remain in place
In March 2023, 102 victims sued two French social media influencers for intentionally causing them to lose money by trading cryptocurrency.
The proposal was then put forward in the Committee on Economic Affairs of the French Senate. The French National Assembly’s Economics Committee later voted in favor of a law banning social media influencers from promoting risky financial services, including cryptocurrencies.
In France, all cryptocurrency companies must register with the Financial Markets Authority (AMF), the primary regulatory body for financial markets.
However, despite this requirement, none of these companies have yet obtained the necessary license to engage social media influencers for advertising and promotional purposes.
The proposed amendment, which was approved by the committee and will be debated in the Senate plenary session next week, seeks to allow cryptocurrency companies to use social media influencers when advertising.
Approval of the proposed legislation by the French Senate’s Economic Affairs Committee would allow registered cryptocurrency firms to hire influencers, provided they meet certain criteria and are approved by the Arab Monetary Fund. This new law will enable cryptocurrency companies to take advantage of the growing influencer marketing trend and harness its potential to increase visibility and engagement.
However, it should be noted that with this new development comes the responsibility of these cryptocurrency companies to ensure that any promotional materials shared through influencers are done in a manner that is fair, clear, and not misleading to consumers. The AMF will also monitor the activity of these companies and influencers to ensure compliance with these regulations.
Difference in regulations
Unlike their counterparts in the National Assembly in Paris, the senators prefer to implement less stringent measures regarding cryptocurrency advertisements by social media influencers.
The National Assembly passed a motion in March 2023 effectively banning such promotions.
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