French influencers may be banned from endorsing unlicensed crypto

Quick Take

  • The French National Assembly voted in favor of an amendment that would ban influencers from promoting crypto assets which have not been licensed by financial regulators. As of the time of the vote, no digital assets have been licensed in France. 
  • The changing regulatory landscape over the coming years may ease the proposed rules.

Policymakers in the French National Assembly voted in favor of an amendment that would ban influencers from promoting crypto assets which haven’t received a stamp of approval from government regulators.

Since no company currently holds a Financial Monetary Authority license - which is currently optional — influencers in France are essentially not allowed to endorse any digital asset. Those who violate the rules could face a two-year prison sentence as well as a fine of 30,000 ($32,000). 

French lawmakers approved the amendment in a bill addressing scams coming from influencers on social networks. Alongside crypto, the ban was also placed on gambling and certain pharmaceutical products and procedures.

The move comes as celebrity endorsements of digital assets have caught the attention of regulators around the world. In the U.S., the Securities and Exchange Commission targeted Kim Kardashian over an ad endorsing the token belonging to EthereumMax in a case that was settled with a $1.3 million fine last October.

A lawsuit last week claimed a group of social media influencers promoted fallen crypto exchange FTX to their followers without disclosure of compensation.

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