In an unprecedented move, French lawmakers from a key legislative committee have reached a unanimous agreement to impose new regulations on social media influencers promoting cryptocurrencies, according to a recent statement from the country’s Senate. This progress may position France as the first European nation to regulate paid marketing efforts by social media personalities, covering not just cryptocurrencies but also cosmetics, gambling, and more.
The agreement, spearheaded by Arthur Delaporte and Stéphane Vojetta in the National Assembly, permits promotions for products by any cryptocurrency firm registered with the Financial Markets Authority, representing a milder stance than previously suggested. However, this development raised debates and disputes between the two chambers of the French legislature.
Initially, an Assembly draft of the influencers bill appeared to effectively ban crypto advertisement through influencers by limiting it to licensed digital asset companies. This proposal sparked concerns from the cryptocurrency industry, which warned that such regulations might hinder France’s ambitions to become a global crypto hub.
On the other hand, senators advocated for more lenient restrictions, stating that social media influencers should be allowed to promote any company that gained registration, including but not limited to, Binance and Bitstamp. This broader category would encompass dozens of companies, displaying a more open approach to cryptocurrency promotion.
Although no final text has been published yet, the deal was struck by the Joint Mixed Committee, which comprises representatives from both legislative chambers.
This development comes as the European Commission proposed new rules on Wednesday, which would hold regulated investment firms accountable for content promoted by social media “finfluencers” that they pay or encourage. If these proposals are passed into law, they would apply across the European Union, including France.
As cryptocurrency becomes increasingly mainstream, the question emerges: Is regulating influencers the right approach to ensuring the integrity and safety of the market? While some argue that these measures are necessary to protect consumers and maintain trust in the industry, others contend that excessive regulation may stifle innovation and limit the growth potential of the emerging crypto sector.
In any case, as France and the European Union take steps to address the rapidly evolving landscape of digital currencies, the global community will be watching closely to observe the impact of these regulatory changes. This ongoing discussion between the pros and cons of cryptocurrency regulations highlights the need for a balanced approach that fosters innovation while maintaining consumer protection.
Source: Coindesk
