French lawmakers have proposed a ban on the promotion of certain financial products and services by electronic means, including crypto assets, in order to protect consumers from potential risks.
The proposed amendment is to Bill no. 790 aimed at combating scams and excesses by influencers on social networks. The amendment also proposes placing a ban on advertising health products, gambling, and video games using similar mechanisms.
The proposal reviewed by the Economic Affairs Committee targets commercial influencers who promote financial products and services that present a risk to consumers, such as investments in digital assets or fungible and non-fungible intangible property.
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.”
The proposed amendment seeks to place “a ban on advertising targeting financial products and services presenting a specific risk for the consumer, to deal with the abuses observed on social networks,” according to a translated version of the proposal. The new wording of the amendment will allow for exceptions to the prohibitions, which will be decided by regulatory power.
The proposal states violating these prohibitions could result in a two-year prison sentence and a 30,000 euro ($32,600) fine. The ban aims to protect consumers from potential risks associated with certain financial products and services while allowing for flexibility in certain exceptions to the prohibitions.
Related: EU MiCA crypto regulation is a ‘balancing act’: Paris Blockchain Week 2023
The proposal to ban crypto influencer promotions in France coincides with Paris Blockchain Week, a gathering of professionals within the crypto, Web3 and blockchain industry. Cointelegraph is currently at the event providing updates and conducting interviews with attendees, panelists and organizers.
Get ready for a week full of exciting events at Paris Blockchain Week 2023, including a hackathon, startup competition, and more. Follow @Cointelegraph for live coverage and behind-the-scenes footage. https://t.co/OyFSbuTE93
— Cointelegraph (@Cointelegraph) March 20, 2023
In an exclusive interview with the founder and chairman of the Paris Blockchain Week, Michael Amar shared the belief that large Web2 companies entering the Web3 space could be a positive for the ecosystem as they bring with them resources capable of increasing mass adoption.