French lawmakers have taken steps to relax strict regulations on cryptocurrency bill proposed in March. The bill aimed to control the impact of social influencers on digital assets. Previously, the bill would only have allowed licensed digital asset companies to participate in influencer marketing in the country. However, the recent development now allows digital asset firms registered with France’s financial regulator Financial Markets Authority (AMF) to engage in influencer marketing.
French lawmakers soften restriction on crypto influencer law
The senators and deputies of the economic affairs committees unanimously agreed on the proposed crypto influencer marketing bill in a press release. Lawmakers Arthur Delaporte and Stephane Vojetta disclosed that influencer marketers could only promote financial products and digital assets from firms registered with the AMF, and that agents from the AMF and consumer affairs regulators would strengthen their regulatory activities to monitor the marketers. The lawmakers also stated that penalties would be imposed for non-compliance with the laws, including imprisonment, a fine, and a possible ban on influencer activity. The prohibition on showing sports betting and gambling products to persons under 18 years and other products such as vapes also cuts across the restriction of influencer marketing.
It is worth noting that no crypto firm is currently licensed in France, nor is it legally expected to do so. However, the AMF has registered almost 60 crypto companies in the country.
The role of crypto influencer marketing
Social media platforms and influencer marketing have become a conventional means of business promotion, even in the crypto space. According to Cision PR Newswire, 37% of consumers trust social media influencers, and 80% of consumers have taken action in response to social media content. Crypto firms utilize influencers to raise brand awareness and convince more investors to plunge into the crypto asset space.
In 2021, Dogecoin had an explosive price run following tweets from Elon Musk and Mark Cuban, prominent entrepreneurs. Due to the crash of many crypto projects social influencers promoted, however, regulators tightened regulations around their activities. The US SEC also sued Justin Sun and other celebrities for digital asset market manipulation and celebrity endorsements in March 2023.
Featured image from Pixabay and chart from TradingView
