Key Points:
- The French Senate has approved additional limitations on cryptocurrency advertising by social media influencers.
- It has issued a statement addressing the new practice standard that will be implemented.
- The agreement permits crypto companies registered with the Financial Market Authority to utilize influencers to promote their products.
According to a Thursday statement from French Senate, senators on a key legislative committee unanimously agreed to new laws prohibiting crypto marketing by social media influencers.
The statement was issued by Arthur Delaporte and Stéphane Vojetta, who headed the discussions in the National Assembly, and read that the agreement allows for promotions of any cryptocurrency business that has registered with the Financial Markets Authority.
The senators and deputies clarified the contours of a commercial activity that is still poorly understood by public authorities, reinforced the legal framework applicable to commercial influence actors, and specified the responsibilities and obligations incumbent on them, believing that this legislative proposal would allow them to support the professionalization of the sector and sanction bad actors.
The proposed legislation, which might be the first in Europe to govern social media stars who perform paid marketing, was the source of contention between the French legislature’s two houses.
Concerned with the rise of excesses, swindles, and swindles, the senators wished to pass legislation to increase the protection and responsibility of all influencers, especially those based overseas.
An Assembly draft of the influencers bill would have essentially prohibited crypto exposure via influencers by limiting it to licensed digital asset enterprises. The sector expressed alarm over the idea, warning that the laws might endanger the country’s hopes to become a crypto powerhouse.
Senators advocated looser limits, arguing that social media influencers should be free to endorse any company that registers.
According to Amel Gacquerre, the Economic Affairs Committee’s rapporteur:
“The Senate has shown itself to be particularly ambitious in terms of the protection of Internet users, consumers, and young people. The bans on the promotion of therapeutic abstention, nicotine products, subscriptions to advice or sports predictions, or even the strengthening of information messages to consumers to encourage influencers to be more sincere in their communication are major advances in this text.”
In addition, the European Commission suggested new laws that would hold regulated investment companies accountable for the material that they pay or encourage a social media “finfluencer” to promote. If voted into law, these plans would apply across the European Union, including France.
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