French legislators have introduced a proposal to prohibit influencers from promoting crypto and other risky financial products. Significant fines and even prison sentences are considered as punishment
The proposal of French lawmakers is an amendment to Bill no. 790, aimed at combating scams and excesses by social media influencers.
It includes a ban on the promotion of certain financial products and services bearing potential risks for consumers, including crypto assets, by electronic means. The bill targets investments in digital assets, fungible and nonfungible intangible property, as well as health products, gambling and video games.
The proposal is currently being reviewed by the Economic Affairs Committee. If approved, advertising of crypto-related financial products and services will require authorization from the Autorité des Marchés Financiers.
Considering the character of the given regulatory body, the licences might be provided to certain financial services professionals and companies. However, there may be some exceptions to the prohibitions, which are not yet clarified.
Random influencers, violating the rules, would be subject to a two-year prison sentence and a 30,000 euro ($32,600) fine.
Last year, the crypto community and influencers were confused when SEC fined reality star Kim Kardashian $1.26 million for promoting the cryptocurrency EthereumMax (EMAX). The case showed that the issue of promoting crypto assets needs legal clarity.