French Lawmakers Propose Ban on Crypto Influencer Promotions

• French lawmakers have proposed a ban on the promotion of certain financial products and services by electronic means, including crypto assets.
• If passed into law, only operators with approval from the Autorité des Marchés Financiers will be allowed to advertise crypto assets.
• Violating these prohibitions could result in a two-year prison sentence and a 30,000 euro ($32,600) fine.

Proposed Ban on Crypto Promotion in France

French lawmakers have proposed a ban on the promotion of certain financial products and services by electronic means, including crypto assets as part of Bill no. 790 aimed at combating scams and excesses by influencers on social networks. The proposal seeks to protect consumers from potential risks associated with these products while allowing for exceptions to the prohibitions that will be decided by regulatory power.

Approval Required

If passed into law, only operators with approval from the Autorité des Marchés Financiers (AMF) will be allowed to advertise crypto assets. The AMF is a regulatory body in charge of “the rules applicable to financial markets and market infrastructures, approves the corporate finance transactions of listed companies and authorizes financial services professionals and the collective investment products under its supervision.”

Potential Punishments

The proposal states that individuals caught violating these prohibitions could face a two-year prison sentence and a 30,000 euro fine. It also seeks to place “a ban on advertising targeting financial products and services presenting a specific risk for the consumer” in order to deal with abuses observed on social networks.

Paris Blockchain Week 2023

The proposed amendment coincides with Paris Blockchain Week, an event gathering professionals within the crypto, Web3 and blockchain industry where Cointelegraph is providing updates and conducting interviews with experts involved in this sector.

Conclusion

In conclusion, French lawmakers are proposing an amendment which would place restrictions on promoting certain financial products such as crypto assets through electronic means in order to protect consumers from potential risks associated with them. Violations could lead to fines or imprisonment depending upon what is decided by the regulatory authority if it passes into law.