MFA and cryptocurrencies don’t get along. The Autorité des Marchés Financiers (AMF) has been trying to regulate this sector for several years. The MFA had already warned trading platforms in recent months.
Do trading experts and other influencers pose a danger to investors?
This resulted in Binance passing its PSAN approval to continue its activities in France. Now it is the turn of the crypto influencers to be in the crosshairs. As their word is often taken literally, they play a significant role in investor behavior and perhaps the time has come to regulate this practice.
For several years, cryptocurrency influencers have developed large communities. By analyzing the projects and rankings, they give their point of view on the market daily. Many investors, especially those who have just entered this market, therefore follow their advice. Unfortunately, no one is a fortune teller. Many tips can become a drama in the event of a market reversal, as we have seen recently. Therefore, many influencers promoted LUNA before its fall and caused those who followed them to lose a lot of money. MFA has therefore included these influencers in its new roadmap. The MFA states that “This roadmap also includes a section dedicated to social media “influencers” in the investment field.you. ”Laissez-faire is therefore a bygone era.
MFA requires more transparent analysis by influencers
The MFA will combine its efforts with those of the ARPP, which controls the advertising sector. According to ARPP, more than one in four influencers lack transparency about their business relationship with projects. If the MFA can succeed in enforcing a guide to good practices in this sector, influencers will need to indicate the risks associated with investing in this sector.
Specifically, influencers will need to communicate clearly about risks. They will also have to indicate if there is a commercial agreement with the project mentioned. The aim is obviously to avoid conflicts of interest that are still too numerous in this sector. There is no real investment culture in France. Therefore, the freedom these prophets have in the cryptocurrency world can quickly turn into a scam. Crypto Gov’s theft of millions of dollars from its community a few weeks ago once again showed the need to change this state of affairs.
While crypto influencers had total freedom until now, the MFA has decided to regulate this practice or even what we could call this “business”. If MFA approval is not yet required for influencers, they will still need to adopt an ethic to continue animating their communities.
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Alt Write SEO
Founded by Marc-Antoine CAEN POLETTI in 2021, Alt Write SEO is a content writing agency specializing in cryptocurrencies, blockchain and NFT. It finds its roots in 2016 with the French cryptocurrency club, of which Marc-Antoine is the current president. Our mission is to support French-speaking crypto companies to make France the first crypto nation in the world.