• French lawmakers have agreed to new rules restricting crypto promotions by social media influencers.
• The law allows promotions for products of any crypto firm that has registered with the Financial Markets Authority.
• The European Commission proposed new rules, which would make regulated investment firms responsible for content that they pay or encourage a social media “finfluencer” to promote.
French Lawmakers Agree on Rules Restricting Crypto Promotions by Social Media Influencers
The French Senate has voted unanimously in favor of new rules restricting crypto promotions by social media influencers, according to a Thursday statement from the country’s Senate. Negotiations led by Arthur Delaporte and Stéphane Vojetta resulted in a final compromise allowing registered crypto firms to advertise through social media influencers, potentially easing industry fears.
What Are the New Rules?
The agreed legislative text allows promotions for products of any crypto firm that has registered with the Financial Markets Authority – a softer line than was initially proposed by the National Assembly’s draft bill. The initial plan would have effectively banned crypto publicity through influencers by restricting it to digital asset companies with a license, raising concerns from the industry that it could jeopardize France’s ambitions as a crypto hub.
European Commission Proposals
On Wednesday, the European Commission proposed new rules which 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.
Reactions from industry leaders were mixed; some saw this as an opportunity for greater adoption while others felt that stricter regulations would be needed in order to protect investors and consumers from potential scams or misinformation spread via online influencers.
The agreement between Senators and representatives of both chambers is expected to provide greater clarity on what type of promotion is allowed when it comes to cryptocurrencies and other digital assets in France – representing an important step towards further legitimizing these markets throughout Europe and beyond.