French lawmakers have decided to reduce the strict regulations proposed in March. They had aimed to impose severe restrictions on cryptocurrency companies registered in France that utilize influencer marketing.
Initially, the bill’s draft limited influencer marketing solely to licensed crypto firms. However, as no cryptocurrency companies are licensed in France or legally obliged to be, this would have effectively hindered their marketing endeavours.
French lawmakers Arthur Delaporte and Stéphane Vojetta announced a unanimous consensus reached by the French Senate on May 25. The agreement was regarding a revised bill that seeks to regulate promotions by influencers across different sectors.
🗞️ Loi sur les #influenceurs : les députés et sénateurs ont trouvé un accord – à l'unanimité – sur un texte de régulation, pionnier en Europe.— Arthur Delaporte (@ArthurDelaporte) May 25, 2023
Notre communiqué avec @StephaneVojetta ⤵️ pic.twitter.com/GAe4965so6
The revised bill favours crypto firms registered with the Financial Markets Authority (AMF), the financial regulator of France.
📢 Loi sur les influenceurs : un accord inédit pour mieux protéger les consommateurs— Sénat (@Senat) May 25, 2023
Réunis en commission mixte paritaire, sénateurs et députés ont trouvé un accord à l’unanimité sur la #PPLInfluenceurs.
Le communiqué :
🔗 https://t.co/qcY1JfH1Qx pic.twitter.com/zZc4ZzZqEg
Delaporte and Vojetta’s release has clarified that the precise wording of the agreed-upon bill is yet to be disclosed. However, it has been specified that the promotion will only apply to financial products and cryptocurrencies offered by players registered with the AMF.
Moreover, the bill aims to strengthen the financial watchdog’s control capabilities and the consumer affairs regulator. Failure to comply with the legislation may result in penalties. These include imprisonment for a maximum of two years and a significant fine of nearly $322,000 (300,000 euros). Furthermore, influencers who engage in prohibited activities may have their promotional activities banned.
It is essential to highlight that the updated regulations go beyond cryptocurrency influencer marketing. Influencers will have limitations on promoting other products, including nicotine-based items, like vapes. Furthermore, showcasing sports betting and gambling products to individuals under 18 will be prohibited.
The recent agreement by the French legislative body follows the approval of an amendment in May. This amendment by the Senate’s Committee on Economic Affairs has allowed AMF-registered crypto firms to participate in influencer marketing. It signifies a favourable change in the regulatory environment.
The finalised wording of the bill has yet to be disclosed to the public. Stakeholders eagerly anticipate additional information on how these regulations will influence cryptocurrency marketing and influencer endorsements in France.