Crypto influencer ads are now in the sights of the MFA

It’s a well-known trend in the cryptocurrency ecosystem: Influencers often make it rain or shine, and their project promotions remain framed in a very vague way. But things are changing in France. The Financial Markets Authority (AMF) and the Professional Advertising Regulatory Authority (ARPP) are looking into the matter.

Crypto influencers monitored by AMF and ARPP

Announced at the end of last week by the AMF, the new it might just shake up some crypto influencers. The Supervisory Authority combines its efforts with those of the ARPP, which controls the advertising sector in France.

The partnership stands out as a priority project “the creation of an ARPP recommendation on communications related to digital assets and token offerings“It is not the first time that the MFA confirms the will to monitor the digital assets sector, but the specific mention of influencers is still a first to our knowledge. The MFA specifies:

This roadmap it also includes a section dedicated to social media “influencers”in the field of investments. […] The ARPP will share its knowledge of practices and trends, drawn inter alia from its Observatory on Responsible Influence.

👉 To go further: 7 things to check before investing your money in a cryptocurrency

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The need to inform about risks

Influencers who promise substantial gains to their subscribers are a legion in the ecosystem. However, as we have seen recently, no one is immune to a sudden drop in prices, with sometimes drastic consequences for investors. The aim of the MFA and the ARPP is therefore first and foremost to guarantee that investors are aware of these risks. This will involve the establishment of a certificate, which already exists for other sectors:

The two authorities intend to create a specific module for the financial sector responsible influence certificate launched in 2021 by the ARPP, with the aim of presenting the best practices and rules applicable in this field in an educational way.

Several goals are targeted for crypto influencer publications: a clear and non-misleading communication mentioning the risks, an indication of the paid nature of the publication if this is the case, as well as a mention of conflicts of interest.

This initiative could make it possible to somehow clean up the publications of crypto influencers. And there is a lot to do: according to the ARPP, more than one in four influencer content lacks transparency regarding their business partnerships.

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Source: AMF

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