French senate advances legislation allowing social media influencers to advertise cryptocurrency

The Committee on Economic Affairs in the French Senate has approved an amendment to pending legislation that will permit registered cryptocurrency companies to enlist social media influencers for promotional and advertising purposes.

The new wording would enable France’s Financial Markets Authority (AMF) to authorize companies to employ influencers for their products.

Some standards will remain in place

In March 2023, 102 victims filed a lawsuit against a pair of French social media influencers for intentionally causing them to lose money through crypto trading.

The proposal was then put forward in France’s Senate Committee on Economic Affairs. France’s National Assembly’s Economics Committee later voted in favor of a law that bans social media influencers from touting risky financial services, including cryptocurrencies..

In France, all cryptocurrency companies must register with the Financial Markets Authority (AMF), the primary regulatory body for financial markets.

However, despite this requirement, none of these companies have yet secured the necessary licensing to engage social media influencers for advertising and promotional purposes.

The proposed amendment, which has been approved by the Committee and will be deliberated in the Senate plenary next week, seeks to permit cryptocurrency firms to use social media influencers when advertising.

The approval of the proposed legislation by the French Senate’s Committee on Economic Affairs would allow registered cryptocurrency companies to employ influencers, provided they meet certain standards and are approved by the AMF. This new law will enable cryptocurrency firms to take advantage of the growing influencer marketing trend and capitalize on its potential for increased visibility and engagement.

However, it’s worth noting that with this new development comes the responsibility of these cryptocurrency companies to ensure that any promotional material shared through influencers is done in a manner that is fair, clear, and not misleading to consumers. The AMF will also monitor the activity of these companies and influencers to ensure compliance with these regulations.

A difference in regulations

In contrast to their counterparts in the National Assembly of Paris, senators favor implementing less stringent measures regarding cryptocurrency advertising by social media influencers.

The National Assembly passed a motion in March 2023 effectively banning such promotions.