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French Legislators Suggest Prohibition of Cryptocurrency Influencer Marketing

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Pavan A Follow

INDIA

Mar, 25 2023

Mar, 25 2023

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French lawmakers have proposed a ban on the promotion of certain financial products and services, including crypto assets to protect consumers from potential risks. The proposal comes amid growing concerns over the potential harm posed to consumers by the unregulated nature of the crypto market.

 

The ban will affect French social media influencers who will no longer be allowed to promote unlicensed crypto products. This law is designed to stop unsafe products and scams from being promoted by well-known personalities on sites like Instagram and YouTube.

 

The National Assembly’s Economics Committee voted in favor of this law that seeks to protect consumers by ensuring that only operators with approval from the Autorité des Marchés Financiers (AMF) will be allowed to advertise crypto assets.

 

Financial markets and market infrastructure are regulated by the AMF, a regulatory body. It approves listed firms' corporate finance transactions and authorizes financial services professionals and collective investment products.

 

The proposed law, which was put forward by Stéphane Vojetta of President Emmanuel Macron’s ruling Renaissance party and opposition socialist Arthur Delaporte, will place digital assets in the same category as risky financial products, gambling, and pharmaceuticals.

 

The measure amounts to an effective ban on influencer promotions since no crypto companies are licensed by the French Financial Markets Authority.

 

The punishment for breaking the law is two years in prison and a €30,000 ($32,300) fine. There are a few exceptions to the ban that allows for some flexibility while still attempting to protect consumers from the possible risks connected to a few financial goods and services.

 

Delaporte told the committee to "act, in this period marked by political problems, to regulate a place where politicians have for too long been uninterested." This was about protests over pension reforms and a vote of confidence that strained French politics.


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Pavan A

CBW - External Analyst

INDIA

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