In a momentous move perceived as a victory for the cryptocurrency industry, French legislators have taken a softer stance on the regulation of crypto influencers. This regulatory shift opens up a significant opportunity for registered crypto firms to leverage the power of social media influencers in their advertising strategies.
France Moves Toward Prioritizing Registered Crypto Firms
In a recent development, the French legislative committee unanimously approved new regulations aimed at limiting cryptocurrency promotions by social media influencers, as stated in an announcement made by the country’s Senate on Thursday.
As per the statement from Arthur Delaporte and Stéphane Vojetta, who spearheaded negotiations in the National Assembly, the agreement permits promotional activities for the products of any crypto firm registered with the Financial Markets Authority. This stance is considerably milder than their previous position.
The recently enacted legislation, potentially the first of its kind in Europe to oversee social media figures who engage in paid marketing – spanning sectors such as cosmetics and gambling – has been a point of contention between the two legislative chambers in France.
However, this development does not mean an end to the regulatory oversight of cryptocurrency advertising in France. Crypto firms must remain diligent in ensuring their promotional activities adhere to established guidelines. The government maintains its commitment to consumer protection, warning that any violations could result in punitive actions.
In the initial draft of the influencers bill presented by the Assembly, an almost complete ban on cryptocurrency promotions via influencers was proposed. This would apply to all except for licensed digital asset companies. The proposition sparked apprehension within the industry, with many fearing that such rigid regulations might dampen France’s aspirations to emerge as a significant hub for cryptocurrencies.
However, senators advocated for more lenient limitations, suggesting that social media influencers should be permitted to promote any company that secures registration. This broader category currently encompasses several high-profile entities such as Binance and Bitstamp.
The Joint Mixed Committee, which comprises representatives from both chambers, has struck a deal, though the final text of this agreement is yet to be made public.
In related news, the European Commission proposed fresh regulations on Wednesday. Under these new rules, regulated investment firms would be held accountable for any content they finance or urge a social media ‘influencer’ to endorse. Should these proposals be enacted into law, they would have widespread implications, affecting the entire European Union, France included.
The decision reached by French lawmakers is emblematic of the ongoing global conversation about the need for balanced cryptocurrency regulation. While the French government’s initial approach was driven by a need to protect consumers from potential investment risks, this updated legislation represents an important acknowledgment of the role and potential of the crypto industry.