A planned ban on social media influencers promoting unlicensed crypto products will harm France’s attractiveness to global Web3 players, lobby group Adan reiterated after a vote in the National Assembly.
Lawmakers supported a move proposed by the Assembly’s Economics Committee that seeks to stop harmful promotions involving risky financial products, medicine and cosmetics.
The approval deals an extra blow to the sector just before it prepares for a toughened registration regime, driving consumers into the hands of foreign influencers, said Adan, which represents the French crypto industry.
“Adan hopes that debates in the Senate will allow the reestablishment of a version more suited to the development of all the innovation of Web3, while guaranteeing user protection” .
Lawmaker Arthur Delaporte, one of the architects of the legislation, last week said it would help value the work of legitimate influencers. His proposal was to forbid promotions for crypto firms unless they hold a license, which no company does in France.
If the measures are agreed, France would join countries such as the U.K. and Belgium in seeking to tighten promotion of crypto products. Last year, reality TV star Kim Kardashian settled with the U.S. Securities and Exchange Commission for hyping EthereumMax without disclosing that she had been paid to promote the token.