Influencer marketing was previously limited to only licensed crypto companies, which France does not now have.
The use of influencer marketing by locally registered cryptocurrency companies will now be subject to less harsh regulations than those set forth in a bill that French lawmakers originally proposed in March. In the initial draft of the legislation, only authorized crypto businesses were permitted to use influencer marketing. However, it’s significant to remember that no crypto businesses are currently licensed in France, and obtaining a license is not legally required.
On May 25th, the French Senate declared that a revised version of the law, which intends to govern influencer promotions across numerous businesses, not just the crypto sector, has received unanimous support from the Senate.
Only cryptocurrency companies that are registered with the Financial Markets Authority (AMF), the nation’s financial regulator, will be required to use influencer marketing in their promotional operations, according to the updated bill. As a result, businesses that are registered with the AMF will be allowed to hire influencers for marketing campaigns whereas unregistered businesses would not be bound by the same regulations.
The choice to change the legislation represents a more rational strategy for influencer marketing in the cryptocurrency sector. The lawmakers hope to strike a compromise between promoting innovation in the industry and protecting consumers by limiting the scope of the restrictions to only registered crypto businesses. This action recognizes the existing state of the French cryptocurrency economy, where licensing for crypto businesses has not yet been established, and provides more marketing flexibility.
The amended bill emphasizes how laws governing cryptocurrencies and influencer marketing are constantly changing. Governments are struggling with how to efficiently regulate the cryptocurrency business while fostering innovation as it expands.
The choice made by French legislators shows a readiness to change and find a medium ground that encourages ethical marketing techniques in the cryptocurrency industry, assuring openness and consumer safety without restricting the sector’s growth potential.
The press statement from Delaporte and Vojetta stated in English that “only financial products and cryptocurrencies from players registered with the AMF may be promoted” and that agents from the financial watchdog and the consumer affairs regulator would “have their control capacities strengthened.”
Penalties for failure to comply with the laws include up to two years imprisonment and a 300,000 euro ($322,000) fine, along with the possibility of banning the influencer activity.