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- 1 Earlier, the law limited influencer marketing to approved crypto businesses.
- 2 Penalties for breaking the law include a fine of roughly $322,000- or 2-years jail.
French legislators agree on regulations for governing cryptocurrency influencer marketing, easing restrictions, and improving regulatory oversight.
According to a statement from the French Senate on Thursday, members of a parliamentary committee have unanimously approved new regulations limiting cryptocurrency marketing by social media influencers.
The French Senate said on May 25 that it had unanimously approved a law to control influencer marketing for a broad range of businesses.
According to a statement from French MPs Arthur Delaporte and Stéphane Vojetta, the amended measure mandates that only crypto companies registered with the Financial Markets Authority (AMF), the country’s financial regulator, can utilize influencers for their marketing initiatives.
Delaporte and Vojetta’s announcement made it clear that only financial goods and cryptocurrencies from players who have registered with the AMF will be eligible for such marketing, even if the exact language of the agreed-upon law has not yet been made public.
The Early Draft of the Bill
Only approved cryptocurrency businesses were permitted to use influencer marketing under an earlier version of the legislation. However, despite the fact that cryptocurrency businesses must now register with the government, they are not presently licensed in France nor are they obliged by law to do so.
Bill No. 790’s proposed amendment aims to prevent fraud and misuse by social media influencers. The plan also recommends against using similar methods which promote gambling, video games, and health products.
If enacted into law, only companies having the Autorité des Marchés Financiers’ blessing would be permitted to market digital currency.
Penalty for Prohibiting the Bill
Additionally, the law aims to improve the regulatory powers held by both the consumer affairs regulator and the financial watchdog. Penalties for breaking the law include a fine of roughly $322,000 (300,000 euros), up to two years in jail, and other severe punishments.
Influencers who engage in illegal acts may also have their promotional efforts stopped.
It’s important to remember that the updated rules go beyond Bitcoin influencer marketing. Influencers will not be allowed to promote certain goods such as those that contain nicotine, like vapes. Additionally, advertising sports betting and gambling goods to anyone under the age of 18 will be prohibited.
Only 60 firms Registered with AMF
However, the 60 crypto businesses listed with the Financial Markets Authority (AMF), the country’s financial authority, would not be subject to its provisions if the measure is enacted. These businesses will continue to abide by AMF standards until the Markets in Crypto-Assets (MiCA) bill, which is expected to succeed, establishes the EU’s own crypto legislation.
One of the 60-AMF registered companies is Binance, which recently began testing in-store payments in France utilizing the cloud-based payment provider Ingenico via Binance Pay.
Following the approval of an amendment by the Senate’s Committee on Economic Affairs earlier in May, a recent agreement in the French legislative body was reached. AMF-registered cryptocurrency companies now have the option to use influencer marketing, signaling a favorable change in the regulatory environment.
Industry participants are anxiously awaiting further information on how these laws will affect Bitcoin marketing and influencer endorsements in France since the complete text of the bill has not yet been made public.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
