France Bullish on Crypto Long Term with Influencer Regulations

(AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP), have initiated a licensing program for influencers who promote financial products, including cryptocurrencies. This initiative, driven by concerns over investor protection, introduces a training course aiming to instill best practices in influencers regarding advertising. Upon successful completion, participants receive a “Responsible Influencer’s Certificate”, which, while non-mandatory, is a testament to their commitment to ethical promotions. Since its introduction by the ARPP in 2021, over 1,000 influencers have been awarded this certificate.

The licensing covers various market segments, such as stocks, bonds, ETFs, derivatives, investment products, and notably, cryptocurrencies. AMF’s head, Marie-Anne Barbat-Layani, emphasized the necessity for transparency, especially if influencer content is sponsored. The message must be “clear, accurate, non-misleading, and balanced.”

This move towards licensing and regulation highlights the challenges and concerns associated with influencer marketing in the digital asset space. Crypto influencers have a growing sway over public opinion, but several incidents have underscored the need for checks and balances. A TikTok influencer, for instance, faced legal repercussions, forfeiting $1.2 million in Bitcoin along with other assets. Celebrity Kim Kardashian was fined $1.26 million by the SEC for promoting an unregistered cryptocurrency product.

🚨Kim Kardashian has been charged by the US Securities and Exchange Commission (SEC) with unlawfully touting a crypto security offered and sold by EthereumMax without disclosing the payment she received for the promotion on social media.

— Cryptonews.com (@cryptonews) October 3, 2022

“Protecting retail investors is our top priority. If a publication by an influencer is paid for, the public must be informed. Finance is a highly regulated sector, and investment communications must comply with the rules and be clear, accurate, non-misleading, and balanced. It appears that some influencers are unaware of this.”

Marie-Anne Barbat-Layani the head of AMF

With rising concerns over misleading promotions and the potential harm to investors, regulatory bodies globally are ramping up efforts to ensure ethical advertising standards. The UK has even warned of potential jail terms for fraudulent crypto promotions. Conversely, the French Senate has recently permitted crypto companies to engage social media influencers for product promotion.