French lawmakers are proposing a ban on the promotion of certain financial products and services by electronic means, including crypto assets, to protect consumers from potential risks. The proposal is part of Bill no. 790, which aims to combat scams and excesses by influencers on social networks.
The proposal reviewed by the Economic Affairs Committee targets commercial influencers who promote financial products and services that present a risk to consumers. If passed into law, only operators with approval from the Autorité des Marchés Financiers will be allowed to advertise crypto assets.
The proposal seeks to place “a ban on advertising targeting financial products and services presenting a specific risk for the consumer, to deal with the abuses observed on social networks.” The new wording of the amendment will allow for exceptions to the prohibitions, which will be decided by the regulatory power.
Violating these prohibitions could result in a two-year prison sentence and a 30,000 euro ($32,600) fine. The ban aims to protect consumers from the potential risks associated with certain financial products and services while allowing for flexibility in certain exceptions to the prohibitions.
In the USA, the SEC recently banned Kim Kardashian for promoting EthereumMax without reporting it to the authorities. As per the SEC’s ruling, Kim broke the federal securities laws’ anti-touting clause. She has agreed to pay $1.26 million in fine to settle things with the SEC and has been banned from promoting any crypto asset securities for the next three years.
The proposed ban in France comes amidst growing concerns around the regulation of crypto assets and the risks they pose to consumers. Many governments and regulatory bodies around the world have been looking into ways to regulate the industry and protect consumers.
The ban, if passed, will bring some relief to consumers who have been targeted by fraudulent influencers promoting risky financial products and services on social media. The regulatory body in charge of approving advertising of crypto assets will have an important role to play in ensuring that only legitimate and safe investments are promoted. It is important for consumers to be vigilant and cautious when it comes to investing in crypto assets and seek professional advice before making any investment decisions.
