Date: 22 March, 2023
In a significant move reflecting a global trend in cryptocurrency regulation, France has followed the footsteps of the United Kingdom by imposing strict rules on the advertising of crypto assets. The effort underscores the growing consensus among regulators worldwide about the need to protect consumers and ensure the responsible promotion of high-risk financial products.
France’s decision to emulate the UK’s ban on certain crypto asset advertising is part of a broader effort to safeguard investors and enhance market transparency. These measures address concerns related to the promotion of cryptocurrencies, initial coin offerings (ICOs), and other crypto-related products that have flooded social media and online platforms.
The United Kingdom took the lead in this regulatory space when it introduced a series of strict rules for crypto asset advertising in early 2022. These rules, set to take effect from October 8, 2023, include implementing a cooling-off period for first-time investors and a ban on ‘refer a friend’ bonuses in crypto promotions. The UK’s Financial Conduct Authority (FCA) emphasized that these rules aim to provide consumers with the time and information necessary to make informed investment decisions. France’s move complements its existing cryptocurrency regulations, including establishing a dedicated legal framework for ICOs, and further demonstrates its commitment to protecting consumers and maintaining financial stability.
France and the UK’s actions are part of a broader global effort to create a unified regulatory framework for the cryptocurrency industry. The European Union has already adopted comprehensive regulations for digital assets, issuers, and service providers through the Markets in Crypto-Assets (MiCA) regulation. MiCA harmonizes standards across the EU, promoting transparency and consumer protection. While these regulations aim to protect investors and ensure responsible advertising practices, they also raise questions about the future of crypto asset promotion. Striking the right balance between regulation and innovation remains challenging, with some stakeholders expressing concerns about the potential stifling of creativity and innovation.
References:
https://www.coindesk.com/policy/2023/03/22/french-lawmakers-agree-to-ban-crypto-influencer-promotions/