In an effort to bring more oversight to the influence of finance bloggers or “finfluencers”, France have made a notable move towards licensing those who promote investment products, including cryptocurrency. The introduction of a ‘Responsible Influence Certificate’, while not obligatory, has been set up by French regulatory agencies such as the Autorité des Marchés Financiers and the Autorité de Régulation Professionnelle de la Publicité.
This reflects an interesting addition to the French finfluencer landscape, one which might see the standard of financial advice on social platforms improve, adding a layer of credibility to those who have the certificate. However, this move by French authorities does highlight the underlying issue of unregulated financial advice on social media networks, emphasizing the need for stricter oversight.
To qualify for the Responsible Influence Certificate in Financial Advertising, an influencer must answer 25 multiple-choice questions, scoring at least 75% correct. As the certificate is voluntary, it upholds no legal status but can be withdrawn if the influencer fails to comply with the certification guidelines.
Despite the potential for increased transparency and reliability of advice, not all influencers may be inclined to aim for the certification. Likewise, audiences who are unaware of the certificate’s existence may unwittingly follow non-certified influencers, potentially falling prey to dubious advice or scamming practices.
Moreover, the inclusion of cryptocurrency within the certification rubric is a positive step for France and its relationship with crypto, especially considering the French Senate approved an amendment allowing registered crypto companies to hire social media influencers for promotional purposes as of May 2023.
Yet, other countries are less accepting of finfluencer culture. In the United Kingdom, for instance, finfluencer promotions could lead to jail time, unlimited fines, or both, if deemed an offense. The European Consumer Organisation, on the other hand, is advocating for a total prohibition on crypto advertising for influencers. These seemingly polarised stances from various nations once again surface the global tension surrounding the regulation and acceptance of cryptocurrency.
While the introduction of a Responsible Influence Certificate may not completely eradicate this tension, it does represent a potential method to regulate the distribution of financial advice online, particularly in the volatile cryptocurrency sphere.
Source: Cointelegraph
