France to ban crypto influencers: what is important
The influencer marketing sector has grown greatly in recent years, both in Europe and worldwide. Influencers’ power is not restricted to traditional industries; it may also drive events in the crypto world. In this case, we instantly think of Elon Musk. Nonetheless, the National Assembly approved the text aimed against influencers.
Who are influencers?
Influencers are social media users with a large following on Instagram, TikTok, and YouTube who frequently sell and promote items or services for a fee. In 2022, approximately 10.5 million Instagram users in Europe had over a thousand followers and might be termed Influencers.
What does this project mean?
The proposed change to Bill 790 is geared at preventing social network fraud and influencer abuse. Using conventional means, the amendment also seeks to ban advertising for health items, gambling, and video games, among cryptocurrencies.
The proposal being discussed by the Economic Affairs Committee is aimed at commercial influencers that advocate risky financial goods and services to customers. This includes investments in digital assets or interchangeable and non-exchangeable intangible assets.
If passed, crypto would be placed in the same category as gambling, pharmaceuticals, and risky financial products. Given specifics, only companies having the authorization of the Autorité des Marchés Financiers will be permitted to promote crypto assets if the bill is enacted.
Furthermore, if the bill is approved, France would join the other countries that have banned the promotion of cryptocurrency products. Belgium and the United Kingdom are already among them.
The AMF is the regulatory authority in charge of rules applicable to financial markets and market infrastructure. It also includes the approval of corporate financing operations of publicly traded companies and the authorization of financial services professionals and collective investment products under its control.
Restrictions
According to the project, the proposed change wants to impose “a restriction on advertising of financial goods and services that represent a specific danger to the customer to counteract the abuses witnessed in social media.” The amendment’s revised phrasing would empower the regulator to decide on exceptions to the restrictions.
According to the project, breaking these prohibitions might result in two years in prison and a fine of 30,000 euros or $32,600. The restriction is intended to safeguard consumers from possible dangers connected with certain financial goods and services while providing flexibility in specific situations.
By the way, the prohibition of the advertising of crypto-influencers in France goes with Paris Blockchain Week, a conference of specialists from the cryptocurrency, Web3, and blockchain sectors.
Although French politicians are attempting to prohibit social media crypto marketing, US senators are pressing the government to prohibit the issue of central bank digital currency (CBDC), arguing it puts users’ personal information at risk. Therefore, as we can see, more and more governments will tighten cryptocurrency legislation. Legislators can take further moves soon. Undoubtedly, this will be one of the factors influencing cryptocurrency prices.
