The French Senate’s Committee on Economic Affairs has given the green light to an amendment that allows registered cryptocurrency firms to engage social media influencers for advertising and promotions. This move comes after the National Assembly’s Economics Committee voted for a law that bans influencers from endorsing risky financial services, including cryptocurrencies. However, the newly approved legislation showcases a more lenient approach by the Senate, as opposed to the restrictive stance taken by the National Assembly.
The origin of this disagreement can be traced back to March 2023, when 102 victims filed a lawsuit against two French social media influencers who intentionally caused them financial losses through cryptocurrency trading. This prompted the initial proposal by the Senate Committee on Economic Affairs to regulate the role of influencers in the promotion of cryptocurrencies.
All cryptocurrency companies in France are required to register with the Financial Markets Authority (AMF), the primary regulatory body for financial markets. However, so far, none of these firms have secured the necessary licenses to work with social media influencers for promotional purposes. The amendment, set for debate in the Senate plenary soon, aims to enable cryptocurrency companies to leverage influencer marketing for advertising, provided that they comply with certain standards and receive AMF approval.
Proponents of the new regulation argue that it will allow firms to capitalize on the growing influencer marketing trend, which can potentially improve their visibility and engagement with audiences. On the other hand, this revised approach demands that cryptocurrency companies ensure that promotional materials shared by influencers are presented fairly, accurately, and without misleading consumers. The AMF will be monitoring the activities of both companies and influencers to guarantee compliance with these regulations.
In conclusion, the approval of the proposed amendment by the French Senate’s Committee on Economic Affairs highlights a difference in perspective between the Senate and the National Assembly regarding the role of social media influencers in promoting cryptocurrencies. While the Senate appears to favor a more lenient approach with fewer restrictions, the National Assembly had previously opted for an outright ban on such promotions. As the debate moves forward, the final outcome will undoubtedly have significant implications for the future of influencer marketing in the cryptocurrency landscape.