A report from the French legislators dated March 22 revealed plans to abolish crypto-related promotion. The reports revealed the need to protect consumers from unethical business practices.
The report stated that the proposed amendment aimed at enabling the consumer to make informed decisions about a product without being influenced by third parties. The team pushed for the amendment of French Bill number 790, which addresses illegal business practices.
According to the new proposal, the team aimed at reducing false and misleading promotion of digital products that has subjected French investors to suffer huge losses. The team mentioned the deceptive practices investors adopt to promote their health products, casino deals and video games.
New Crypto Promotion Regulations in France
The legislator tasked the French Economic Affairs Committee (EAC) to oversee the operation of brand ambassadors in the financial market, creating awareness of high-risk digital assets.
Meanwhile, the proposal will be submitted to the orité des Marchés Financiers (AMF) for approval. If the AMF rules in favor of the new proposal, all the digital assets service providers (DASP) will be required to seek regulatory approval to promote their products.
Per French law, the AMF team has been mandated to control the operation of the financial market. Beyond this, the high number of consumer abuses witnessed in the financial sector has obliged the legislators to push for tougher regulations.
The legislators have proposed the condition under which the DASP will be allowed to promote digital assets.Based on the March 22 report, the company must pay a court fine of $32600 or a two-year jail term if crypto firms contravene the new proposal.
Advantages of the Paris Blockchain Week
The legislator’s proposal comes when France hosts over 2000 Web3 enthusiasts at Blockchain week in Paris. At the event, the participants will have endless opportunities to engage with key market players in the crypto world.
Also, the attendees will build their social networks and explore emerging technologies in blockchain and Web3. A report from the chairperson of the Paris Blockchain week, Michael Amar, stated the event would provide a suitable solution to address the gap between the Web3 and Web2 space.