The French National Assembly’s Economics Committee agreed to a new amendment curtailing influencers from advertising dangerous products. The proposed legislation received strong support and has a good chance of making it through the Assembly and Senate. If the amendment is passed into law, it will severely impact influencers promoting crypto assets.
Crypto Assets Will Be Equated to Gambling
Unregulated promotions of potentially harmful products like crypto assets have become a matter of contention among many European nations. France now plans to join countries like the UK and Belgium as it tightens down on crypto promotions. The movement received support from both sides of the political spectrum as a new amendment received the approval of a legislative committee this Wednesday.
Amendment n°CE48 aims to combat scams and restrict the advertising of pharmaceutical products, gambling, and crypto asset promotions on social media. The text treats digital assets identically to other speculative financial products. Lawmakers seek to limit the proliferation of advertisements posing risks to consumers, such as investments in various digital assets.
The text explicitly bans individuals from using social media to promote crypto assets not licensed by financial regulators. Currently, these are exactly zero. While changing regulations may open ways to circumvent the restrictions, the amendment would effectively ban French influencers from endorsing digital assets. With penalties of up to two years in prison and a €30,000 ($32,000) fine, few would risk the regulator’s ire.
Upcoming Regulatory Changes May Ease Restrictions
French lawmakers appear intent on dealing with the proliferation of scams on social networks and protecting consumers from risks. The proposed legislation coincides with a new wave of crypto promotion controversy as the US Securities and Exchange Commission (SEC) charged eight celebrities with illegal advertisements on social media.
Despite turbulent French politics, the amendment enjoys support from the ruling party and the opposition. Socialist Arthur Delaporte noted that the crypto industry had remained under the radar for most politicians and urged reforms. Strong support from lawmakers means that the proposed legislation has every chance to soon pass into law.
Not all is doom and gloom for crypto influencers, though. France plans to overhaul its crypto firm registration requirements, adhering to the EU’s upcoming Markets in Crypto-Assets regulations. Under the new guidelines, European companies can extend their services through the bloc, once again opening the doors for crypto ads.