French lawmakers propose ban on crypto flu campaigns

French lawmakers have proposed a ban on the marketing of certain financial products and services by electronic means, including cryptoassets, to protect consumers from potential risks.

The proposed amendment is in bill no. 790 aimed at combating fraud and excesses from influencers on social networks. The amendment also proposes to ban the advertising of health products, gambling and video games using similar mechanisms.

The proposal reviewed by the Economic Committee targets commercial influencers who promote financial products and services that pose a risk to consumers, such as investments in digital assets or exchangeable and non-fungible intangible properties.

If passed into law, only operators with approval from the Autorité des Marchés Financiers (AMF) will be allowed to advertise crypto assets. AMF is a regulatory body responsible for “the rules applicable to financial markets and market infrastructures, approves corporate financing transactions of listed companies and authorizes professional financial services and collective investment products under its supervision.”

The proposed amendment seeks to place “a ban on advertising aimed at financial products and services that pose a specific risk to the consumer, in order to deal with the abuses observed on social networks,” according to a translated version of the proposal. The new wording in the amendment will allow for exceptions to the prohibitions, which are decided by the regulatory authority.

The proposal says that violating these bans could result in two years in prison and a fine of 30,000 euros ($32,600). The ban aims to protect consumers against potential risks linked to certain financial products and services, while at the same time allowing for flexibility in certain exceptions to the bans.

Related: EU’s MiCA crypto regulation is a ‘balancing act’: Paris Blockchain Week 2023

The proposal to ban crypto-influence campaigns in France coincides with Paris Blockchain Week, a gathering of crypto, Web3 and blockchain industry professionals. Cointelegraph is currently at the event providing updates and conducting interviews with attendees, panelists and organizers.

In an exclusive interview with the founder and chairman of Paris Blockchain Week, Michael Amar shared his belief that large Web2 companies entering the Web3 space can be positive for the ecosystem as they bring with them resources capable of increasing mass adoption.