French Lawmakers Ease Up on Crypto Influencers – Is This the End of the Ban?

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French lawmakers have unanimously agreed to new rules that restrict crypto promotions by social media influencers. This move is in a bid to protect consumers from fraudulent and misleading advertising tactics. According to the Senate, this may be the first law in Europe to regulate social media personalities who do paid marketing and includes areas such as gambling and cosmetics.

🗞️ Loi sur les #influenceurs : les députés et sénateurs ont trouvé un accord – à l'unanimité – sur un texte de régulation, pionnier en Europe.

Notre communiqué avec @StephaneVojetta ⤵️ pic.twitter.com/GAe4965so6

— Arthur Delaporte (@ArthurDelaporte) May 25, 2023

The deal allows promotions for products of any crypto firm that has registered with the Financial Markets Authority, which is a softer line than what lawmakers had previously taken. The law was the subject of disputes between the two chambers of the French legislature. An Assembly draft of the influencers’ bill would have effectively banned crypto publicity through influencers by restricting it to digital asset companies with a license. This plan raised concerns from the industry, which warned the rules could jeopardize the country’s ambitions to be a crypto hub.

On the other hand, senators favored gentler restrictions, saying social media influencers should be allowed to promote any company that gained registration, a much broader category that currently includes dozens of companies such as Binance and Bitstamp. No final text has yet been published of the deal struck by the Joint Mixed Committee, which includes representatives from both chambers.

The European Commission has also proposed new rules that would make regulated investment firms responsible for content that they pay or encourage a social media “finfluencer” to promote. If passed into law, those proposals would apply across the European Union, including France.

The crypto industry has seen a surge in popularity in recent years, with cryptocurrencies like Bitcoin and Ethereum achieving mainstream acceptance. Social media has played a huge role in promoting these digital assets, with influencers sharing their investments and views with their followers.

The implications of this French law on the crypto market are still uncertain. However, it is expected that this move may lead to similar regulatory measures in other countries. The restrictions on crypto promotions may also impact the awareness and adoption of digital assets among the general public.

The Bottom Line

The French lawmakers’ decision to restrict crypto promotions by social media influencers is a significant step towards protecting consumers from fraudulent advertising tactics. While the implications of this law on the crypto market are still unclear, it is expected that similar regulatory measures may be adopted by other countries. Traders should keep an eye on any developments in this area and adjust their strategies accordingly.