French lawmakers have proposed banning the electronic promotion of certain financial products and services, including crypto assets, to protect consumers from potential risks.
The proposed amendment is no to the bill. 790, aimed at combating scams and excesses by influencers on social networks. The amendment also proposes banning the use of similar mechanisms to advertise health care products, gambling and video games.
The proposals reviewed by the Committee on Economic Affairs target business influencers who promote financial products and services that pose risks to consumers, such as investments in digital assets or fungible and non-fungible intangible assets. If passed into law, only operators approved by the Autorité des Marchés Financiers would be allowed to advertise crypto assets. The AMF is a regulator responsible for "the rules applicable to financial markets and market infrastructures, the approval of corporate finance transactions by listed companies, and the authorization of financial services professionals and collective investment products regulated by it."
According to a translation of the proposal, the proposed amendments seek to "prohibit advertisements for financial products and services that pose a specific risk to consumers in response to abuses observed on social networks." The new wording of the amendment would allow for exceptions to the ban, which would be determined by the regulator. Violating these prohibitions could lead to two years in prison and a 30,000-euro ($32,600) fine, the proposal states. The ban is designed to protect consumers from potential risks associated with certain financial products and services, while allowing flexibility in certain exceptions to the ban.
The proposal to ban cryptocurrency influencer promotions in France coincides with Paris Blockchain Week, a gathering of professionals in the cryptocurrency, Web3, and blockchain industries. Cointelegraph is currently providing updates from the event and conducting interviews with attendees, panelists, and organizers. In an exclusive interview with Cointelegraph, Paris Blockchain Week Founder and Chairman Michael Amar shared his belief that large Web2 companies entering the Web3 space could have a positive impact on the ecosystem, as they bring resources used.
