The Shift in Crypto Marketing Regulations

In a significant move, French legislators have agreed to soften the previously stringent restrictions on cryptocurrency firms aiming to harness the power of influencer marketing. Initially proposed in March, the original bill placed heavy constraints on local crypto companies, limiting their ability to engage with influencers altogether.

What Changed?

The original draft made it mandatory for all crypto companies to be licensed before they could use any form of influencer marketing. However, since no crypto company is currently licensed in France and there’s no legal requirement for them to obtain one, this led to a somewhat absurd situation. Who can promote what if there are no licensed players around? That’s where the revisions come in!

The New Rules

As of May 25, the French Senate unanimously agreed to a revised bill. It now permits registered cryptocurrency firms to employ influencers for marketing, provided they’re registered with the Financial Markets Authority (AMF). This is a more practical approach, given that the AMF currently has about 60 registered firms on its books. However, it’s worth noting that none of these firms have opted for the optional licensing route.

Supplier Requirements

• Only promote financial products and cryptocurrencies from AMF-registered entities.
• Strengthen control capacities for financial regulators and consumer protection watchdogs.

The details of the final wording are still on the way, but what’s clear is that this measure is intended to bolster consumer protection.

Punishment for Non-compliance

So, what happens if a firm flouts these new laws? Well, brace yourself: penalties could include up to two years behind bars, a whopping 300,000 euro fine (around $322,000), or even a ban on influencer marketing altogether. Clearly, the stakes are high, and the French government is not playing around!

Broader Implications

It’s important to note that the new regulations aren’t limited to crypto firms. Influencers promoting nicotine products, including vapes, will face restrictions, and those peddling sports betting or gambling products to people under 18 will be firmly banned. This measure reflects a wider concern for consumer protection in various sectors.

The recent agreement comes hot on the heels of another significant amendment allowing AMF-registered firms to dive into the influencer marketing pool, making these developments particularly timely. As France takes this pioneering step in regulating influencer promotions across multiple sectors, other nations might just lean in to see what happens next.