Recently, French lawmakers have proposed an amendment to Bill 790 that could potentially see crypto-related promotions on social media become criminalized. If the amendment passes, violators face a two-year prison sentence and a €30,000 ($32,600) fine. As awareness of the underlying technology and potential of cryptocurrency investments increases, it is important to mitigate the risk associated with them such as their high volatility, as well as the lack of regulation in many countries.
While the proposed amendment is not targeting crypto specifically, it would cover influencers promoting health products, gambling, video games and other activities on their social channels. To make the bill viable however, a single crypto-based company in France needs to acquire a permit from their market regulator - the Autorité des Marchés Financiers - for the amendment to be enacted.
Despite the potential of the bill to effectively protect citizens, many insiders have expressed their hesitance towards a social media ban on crypto. In the absence of any viable alternatives, countries must resort to restrictions on crypto-related promotions, though this could see French citizens, crypto companies, and influencers leaving the country seeking a friendlier approach to cryptocurrencies.
The SEC has penalized several influencers in the past, such as Kim Kardashian, for promoting EthereumMax without disclosing the compensation they received. Logan Paul has also been sued for encouraging followers to buy into the Web3 game CryptoZoo, which turned out to be a rug pull. With incidents like these taking place, it is understandable why regulators need to take certain measures to protect the public.
Given the global nature of cryptocurrencies and the current trajectory of the industry, a ban on advertising them on social media might not be the most effective approach. Though media outlets on the subject often clearly specify when their content should not be taken as financial advice, French leaders should consider a similar approach to differentiate between ads and organic content. This would ensure that France keeps its reputation as a tech-friendly place to do business.
Katie Turner
- 2023-04-06
New Crypto-Related Promotion Ban Proposed by French Lawmakers
French lawmakers are aiming to pass a new bill that would potentially ban crypto-related promotions on social media. The bill would crack down on influencers who promote health products, gambling, video games, and other activities. If passed, violators face a two-year prison sentence and a €30,000 ($32,600) fine.
