France’s parliament has proposed an amendment to Bill no. 790, which aims to protect consumers from potential risks posed by certain financial products and services promoted via electronic means, such as crypto assets. The amendment would ban the advertising of health products, gambling, and video games in this manner as well. If passed, the bill will combat scams and excesses by crypto influencers on social media.
The proposal recently examined by the Economic Affairs Committee focuses on commercial influencers promoting financial products and services with a potential risk to consumers, such as investments in digital assets or fungible and non-fungible intangible property. Only operators authorized by the Autorité des Marchés Financiers’ (AMF) would be allowed to advertise crypto assets if approved. The AMF is a regulatory body responsible for setting rules applicable to financial markets and market infrastructures, approving corporate finance transactions of listed companies, and authorizing financial services professionals’ activities and the collective investment products they supervise.
The proposed amendment seeks to ban advertising targeting financial products and services that present potential consumer risks. Under the new wording of the amendment, certain exceptions may be authorized by the relevant regulatory authorities. However, should violations take place, enforcement measures include two-year prison sentences and fines of up to 30,000 euros ($32,600). This measure aims to protect consumers from potential risks associated with certain financial products and services while still allowing for necessary flexibility.
