French government revises strict rules on influencer marketing for cryptocurrency companies

TL;DR Breakdown

  • French legislators have revised their strict regulations on cryptocurrency companies and influencer marketing, opting for a more innovative approach.
  • The revised bill allows licensed cryptocurrency exchanges and compliant crypto companies to promote their products through influencer marketing.
  • The legislation aims to promote transparency and oversight, with penalties for non-compliance including imprisonment and significant fines.

In a stunning twist, French legislators have taken an unexpected stance by revising the strict rules initially proposed in March. These regulations had intended to impose severe limitations on cryptocurrency companies registered in the country, particularly those engaging in influencer marketing.

However, the lawmakers have now opted for a more innovative approach, signaling a significant departure from the previous stringent measures.

Earlier this month, the French government drafted a bill that imposed regulations on influencers, requiring them to obtain licenses and prohibiting them from engaging in exclusive marketing for crypto companies. This move by the French government aimed to regulate influencer activities and promote transparency in promoting cryptocurrencies.

Arthur Delaporte and Stéphane Vojetta, who spearheaded the motion in the National Assembly, have stated that the recent amendment in the bill will enable all licensed cryptocurrency exchanges within the French state and crypto companies that have registered and complied with the regulatory guidelines to promote their products.

The bill aims to bolster the oversight capabilities of both the AMF and the consumer affairs regulator, empowering them to exercise greater control. Failure to comply with the legislation could result in severe penalties, including imprisonment for a maximum of two years and a significant fine of approximately $322,000 (300,000 euros).

Senators have expressed their support for more lenient restrictions regarding the promotion of companies by social media influencers. They argue that influencers should be permitted to endorse any company that has obtained registration, encompassing a significantly wider range of businesses than the current regulations. Notable companies like Binance and Bitstamp are among the dozens that fall under this expanded category.

In response to these sentiments, the Joint Mixed Committee, comprised of representatives from both legislative chambers, has released a draft containing the agreed-upon legislative text. This development marks a significant step forward in the ongoing discussions surrounding regulating social media influencer endorsements.

The committee aims to initiate a comprehensive and structured debate on the proposed changes by presenting the draft, considering various stakeholders’ diverse perspectives and concerns.

The draft legislation reflects a growing recognition among senators of the evolving landscape of social media influencer marketing. By broadening the scope of permissible company endorsements, policymakers seek to balance consumer protection and allow influencers to engage in business collaborations more freely.

Including prominent entities such as Binance and Bitstamp within the expanded category highlights the intention to embrace innovation and adapt to the dynamic nature of the digital economy.

However, further deliberations and potential amendments are expected as the draft undergoes scrutiny and feedback from relevant committees and interested parties.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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