The French Senate Economic Affairs Committee approved an amendment to current legislation that allows media personalities to advertise cryptocurrency assets on social media.
The proposed amendment, which was approved by the economic affairs committee, will be debated in the French Senate plenary next week.
The legislative initiative aims to allow cryptocurrency companies to engage the country’s influencers in their promotions and officially pay for their services.
Earlier, France’s National Assembly took a tougher stance, saying celebrities should be banned from promoting questionable financial services, such as gambling and cryptocurrencies, on social media.
Members of the National Assembly based their proposal on the fact that in March 2023 alone, French courts received lawsuits from hundreds of people accusing a number of media personalities of financial losses because of misleading advertisements for cryptocurrency trading services.
The Economic Affairs Committee said the Senate plan brings the country’s legislation into line with the current French Consumer Protection Code and applies only to cryptocurrency companies that have registered with the Authority for the Financial Markets (AMF).
In doing so, cryptocurrency companies will be responsible for ensuring that any promotional materials are true and not misleading to consumers.
The other day, the U.K. Parliament approved a similar amendment to current legislation relaxing advertising requirements for cryptocurrency services for national companies.