In a surprising turn of events, French lawmakers have decided to scale back the stringent regulations proposed in March that would have imposed severe restrictions on locally-registered cryptocurrency companies utilizing influencer marketing.
The initial draft of the bill had limited influencer marketing exclusively to licensed crypto firms. However, since no cryptocurrency companies are currently licensed in France or legally obligated to do so, this would have effectively stifled their marketing efforts.
On May 25, the French Senate reached a unanimous consensus on a revised bill aimed at regulating promotions by influencers across various industries.
The updated version now only mandates that crypto firms registered with the Financial Markets Authority (AMF), the country’s financial regulator, can engage influencers for their marketing endeavors.
This significant amendment was communicated through a statement by French lawmakers Arthur Delaporte and Stéphane Vojetta.
While the precise wording of the agreed-upon bill is yet to be disclosed, Delaporte and Vojetta’s release clarified that only financial products and cryptocurrencies from AMF-registered players would be eligible for the promotion.
Furthermore, the bill seeks to enhance the control capabilities of both the financial watchdog and the consumer affairs regulator. Non-compliance with the legislation could lead to penalties, including imprisonment for up to two years and a substantial fine of nearly $322,000 (300,000 euros).
Additionally, influencers engaging in prohibited activities may face a ban on their promotional activities.
It is worth noting that the revised regulations also extend beyond cryptocurrency influencer marketing. Other products, such as nicotine-based items like vapes, will be subject to restricted promotion by influencers. Moreover, there will be a ban on showcasing sports betting and gambling products to individuals under the age of 18.
This recent agreement in the French legislative body comes on the heels of the Senate’s Committee on Economic Affairs approving an amendment earlier in May. The amendment granted AMF-registered crypto firms the freedom to engage in influencer marketing, marking a positive shift in the regulatory landscape.
As the bill’s finalized wording has yet to be made public, industry stakeholders eagerly await further details on how these regulations will shape the future of cryptocurrency marketing and influencer endorsements in France.
