French Lawmakers Consider Total Ban on Crypto Promotion
- French lawmakers have proposed a ban on crypto promotion on Instagram and YouTube.
- If approved by the assembly, promoters would need to be approved by the Autorité des Marchés Financiers’ (AMF).
- Violators will face a monetary fine or a prison sentence.
Lawmakers in France have proposed a ban to stop social media influencers on platforms such as Instagram and YouTube from promoting financial services, including cryptocurrencies. The move is part of an ongoing effort to protect users from possible risks involved in exposure to crypto and other areas.
The proposal was partly triggered by the huge loss suffered by French crypto users and the ongoing chaos in the industry. The proposal also suggests prohibiting the use of related means for advertising gambling, video games, and health items.
The proposal has been reviewed by the Economic Affairs Committee and seeks to penalize commercial influencers who promote risky financial services, including non-fungible and fungible assets.
Implementing the proposal would mean that only platforms and individuals with approval from the Autorité des Marchés Financiers’ (AMF) would be permitted to market digital assets in France. Violators face two years in prison and a fine of 30,000 euros ($32,300).
The ban was proposed by Stéphane Vojetta of the Renaissance Party and opposition socialist Arthur Delaporte. Delaporte noted that this was the best time to act, “in this period marked by political problems, to regulate a place where politicians have for too long been uninterested.” His comments referred to the recent chaos in France that saw widespread protests over pension reform.
Despite the possible ban on crypto promotion, France remains open to the crypto industry, as companies such as Circle, Binance, and Crypto.com recently decided to extend their operations there. However, restricting the promotion of cryptocurrency products will see France join nations like the United Kingdom and Belgium.
Cryptocurrency advertising in the US is under the scrutiny of the U.S. Securities and Exchange Commission (SEC). Last year, the SEC and reality TV star Kim Kardashian reached a settlement for Kardashian’s promotion of EthereumMax without disclosing that she had been paid for the promotion.