The French crypto industry watchdog Adan has warned that upcoming legislation in France will have a negative effect on the country's attractiveness for Web3 businesses. The National Assembly's Economics Committee has recently proposed to restrict the promotions of unlicensed crypto products, medication, and cosmetics. If the measure is approved, it will add strain on the sector just before the new registration rules come into force, potentially forcing French customers towards foreign influencers.
Adan hopes that debates in the Senate will result in an outcome which both protects client rights and allows the innovation of Web3 technology. French lawmaker Arthur Delaporte, who advocated for the law, stated the intention of this is to respect the work of genuine influencers. If agreed, France would be the latest country to take account of the promotional tactics of some crypto firms, not dissimilar to the countries such as the U.K. and Belgium. The SEC recently intervened to stop a celebrity from hyping a certain EthereumMax token without disclosing she was paid for promotion.
The French crypto industry is learning the purported efforts to protect consumer rights might put Web3 businesses in the country at a disadvantage, as it will limit the reach of the influencers. Finding the right balance between user protection and hosting a rich-innovative industry environment is the main challenge for the lawmakers. Unfortunately, some of the current regulations go too far in their efforts, such as banning all forms of influencer-promoted tokens, and ignoring the potential of legitimate projects. Such an uncompromising posture often allows scammers to roam free at the expense of the legitimate firms.
The aforementioned incident indicates that tougher rules and regulations are necessary to reduce the number of scams, which ultimately allows the safe side of the influencers, content creators, and industry coin promoters to overcome. Whether it will help the regulation framework or not, we still need to wait and see.
Benjamin Anderson
- 2023-03-30
French Crypto: Worried About Upcoming Regulations
The French crypto industry watchdog Adan has warned that upcoming legislation in France may have a negative effect on the country's attractiveness for Web3 businesses. The current regulations may go too far in their efforts, but tougher rules may be necessary to reduce the number of scams.
