French Legislators Suggest Prohibition of Influencer Advertising for Cryptocurrencies

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As per the suggestion, any person who breaches the restrictions may be subjected to a jail term of two years and a monetary penalty of 30,000 euros.

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Members of the French parliament have suggested prohibiting the advertisement of particular financial products and services through digital channels, such as cryptocurrencies, as a measure to safeguard consumers from possible hazards.

The suggested change is to modify Bill number 790, which seeks to counter fraudulent activities and irresponsible behavior by influencers on social media platforms. Additionally, the proposed alteration suggests to disallow the promotion of products related to health, gambling, and video games through comparable means.

The suggested plan that was assessed by the Economic Affairs Committee is focused on business influencers who endorse financial goods and services that could potentially harm customers, like digital asset investments, and items that are either interchangeable or non-interchangeable and intangible.

Should it become legislation, only crypto asset advertisers permitted by the Autorité des Marchés Financiers will be allowed to operate. The AMF is responsible for supervising "the regulations that apply to financial markets and market structures, approving public offerings for listed businesses, and licensing financial services providers and investment products that are under its scope of authority."

The suggested change aims to prohibit advertisements that focus on financial products and services that can be harmful to the consumer. This is to address the inappropriate practices seen on social media. The proposal allows certain exemptions to the restrictions, which will be determined by those in charge of regulating the industry.

According to the proposition, breaking these restrictions may lead to imprisonment for two years as well as a fine of 30,000 euros ($32,600). The goal of this ban is to safeguard customers from potential dangers that some financial services and products could bring. Nonetheless, exemptions to the ban are still possible to promote flexibility.

Connected: France's Blockchain Week 2023 highlights the EU's MiCA crypto legislation as a complicated endeavor to find the right balance between regulation and innovation in the industry.

At the same time as Paris Blockchain Week, where crypto and blockchain experts gather, an idea has been suggested to prohibit promotions from cryptocurrency influencers in France. Cointelegraph is present at the event and keeping everyone updated by talking to guests, speakers, and those coordinating the gathering.

Prepare yourself for an action-packed week of thrilling activities at the Paris Blockchain Week 2023. There will be a hackathon, startup competition, and numerous other events. Stay tuned to @Cointelegraph for live updates and exclusive behind-the-scenes content. https://t.co/OyFSbuTE93

París Blockchain Week founder and chairman, Michael Amar, was interviewed by Cointelegraph. During the interview, he expressed his belief that the entrance of big Web2 companies to Web3 could benefit the ecosystem. According to him, these companies possess resources that could help increase mass adoption.

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