French lawmakers have now agreed to soften the restrictions after initial proposals in March sought to impose strict limitations on the use of influencer marketing by locally-registered cryptocurrency companies.
The original version of the bill mandated that only licensed crypto companies could engage in influencer marketing. However, it is important to note that currently, no crypto companies are licensed in France, and there is no legal obligation for them to obtain such a license.
On May 25, the French Senate unanimously reached an agreement on a revised bill designed to regulate promotions conducted by influencers across various industries. According to lawmakers Arthur Delaporte and Stéphane Vojetta, the updated bill now only requires crypto firms registered with the Financial Markets Authority (AMF), the nation’s financial regulator, to utilize influencer marketing for their promotional activities. The specific wording of the agreed bill is yet to be made public.
French Lawmakers Imposing Jail Time on Defaulters
At present, the AMF has around 60 registered crypto firms, none of which have opted for the voluntary licensing.
According to the statement by Delaporte and Vojetta, the revised regulations by French Lawmakers stipulate that only financial products and cryptocurrencies offered by AMF-registered entities can be promoted. The release also mentions that both the financial watchdog and the consumer affairs regulator will experience strengthened control capabilities. Non-compliance with these laws carries penalties, including potential imprisonment of up to two years, a fine of 300,000 euros ($322,000), and the potential prohibition of influencer activities.
The restrictions on influencers by French Lawmakers extend beyond crypto promotions and now encompass other products, such as nicotine-related items like vapes. Additionally, there will be a prohibition on featuring sports betting and gambling products in promotions targeted at individuals under the age of 18.
This agreement follows the Senate’s Committee on Economic Affairs’ approval, in early May, of an amendment allowing AMF-registered crypto firms to engage in influencer marketing.