French lawmakers propose ban on crypto influencer promotions

To safeguard consumers from possible hazards, French legislators have suggested a ban on the advertising of some financial goods and services through electronic channels, including crypto assets.

The proposed amendment to Law No. 790 aims to address fraud and abuse by social media influencers. In addition, the amendment seeks a prohibition on promoting health items, gambling, and video games using similar methods.

The Economic Affairs Committee proposal targets commercial influencers that push consumer-risky financial goods and services, such as investments in digital assets or fungible and non-fungible intangible property.

If approved into legislation, only operators with AMF authorization will be permitted to market crypto assets.

The AMF is responsible for “the laws applicable to financial markets and market infrastructures, the approval of corporate finance transactions of listed companies, and the authorization of financial services professionals and collective investment products under its supervision.”

According to the translated proposal, the proposed change attempts to prohibit “promotion targeting financial goods and services that pose a special risk to the customer to combat the abuses identified on social networks.”

The amended language of the amendment will provide exceptions to the bans, as determined by a regulatory authority.

According to the plan, breaking these restrictions might result in a two-year jail term and a fine of 30,000 euros ($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.

The plan to prohibit cryptocurrency influencer marketing in France coincides with Paris Blockchain Week, a meeting of crypto, Web3, and blockchain industry executives.

In an exclusive interview with the creator and chairman of the Paris Blockchain Week, Michael Amar expressed his opinion that the entry of significant Web2 corporations into the Web3 arena might be beneficial to the ecosystem, as they bring with them the means to increase public adoption.