French lawmakers have proposed hefty fines and prison time for those breaking the proposed ban on promoting crypto and other risky financial ventures on social media.
Lawmakers in France have taken a major step towards passing legislation that will ban social media influencers from promoting crypto and other risky financial investments. The law proposes two-year jail terms and a 30,000 euro fine for those violating it.
The first major step in passing the legislation was taken by the National Assembly’s Economics Committee, which voted for the proposed amendment.
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The law will make engaging in activities that directly or indirectly promote crypto investment from unlicensed crypto firms illegal. It will be implemented via an amendment to Bill no. 790. The proposal was submitted by Stéphane Vojetta of the ruling Renaissance Party and socialist Arthur Delaporte.
If passed, crypto would be placed in the same category as gambling, pharmaceuticals, and risky financial products. Only firms licensed by the Autorité des Marchés Financiers can promote their products under the new law.
Once it passes into law, France would join other European nations like the United Kingdom and Belgium, which have passed laws restricting the advertisement of crypto products.
The committee vote coincided with the Paris Blockchain Week, which brings together experts within Web3, crypto, and the blockchain sector. During a handful of panels, crypto industry players discussed various matters, including EU MiCA regulation.
While French lawmakers attempt to ban social media crypto promotions, US lawmakers are urging the government to ban the issuance of central bank digital currency (CBDC), claiming it poses a risk to customers' personal information.