French lawmakers have agreed to ease restrictions on a law first proposed in March that would have severely restricted locally registered cryptocurrency companies from using influencer marketing.
An earlier bill only licensed crypto companies are allowed to engage in influencer marketing. While crypto companies are currently required to register with the regulator, none of them are currently licensed in France, nor are they legally required to do so.
On May 25, the French Senate he said reached unanimous agreement on a bill that aims to regulate influencer promotion for a wide range of industries.
According to French lawmakers Arthur Delaporte and Stéphane Vojetta in a statement, the revised law now only requires crypto firms registered with the Financial Markets Authority (AMF) – the national financial regulator – to use influencers for their marketing efforts.
The exact wording of the approved bill is yet to be published.
️ Act on #influencers : deputies and senators reached a unanimous agreement on a regulatory text that is a pioneer in Europe.
Our communication with @StephaneVojetta ⤵️ pic.twitter.com/GAe4965so6
— Arthur Delaporte (@ArthurDelaporte) May 25, 2023
There are currently around 60 crypto firms registered with AMF and no one did optional licensing.
Delaporte and Vojetta’s translation states that “only financial products and cryptocurrencies from players registered with the AMF may be promoted” and agents from the financial watchdog, along with the consumer affairs regulator, “will have their control capacities strengthened.”
The Influencers Act: an unprecedented deal to better protect consumers
Senators and deputies, gathered in a joint committee, reached a unanimous agreement on #PPLPinfluencers.
Press Release:
https://t.co/qcY1JfH1Qx pic.twitter.com/zZc4ZzZqEg— Senate (@Senate) May 25, 2023
Penalties for non-compliance include up to two years in prison and a €300,000 ($322,000) fine, along with the possibility of banning the influencer.
Related: France is considering fast-tracking registered crypto firms under new EU rules
Promotion of other products by influencers has also been restricted, including nicotine products such as vapes. A ban on showing sports betting and gambling products to people under the age of 18 would also come into force.
The agreement comes as it did earlier in May, the Senate Economic Committee approved the amendment this allowed AMF-registered crypto firms to carry out influencer marketing.
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