Knowledge Base
Assess the strategies and methods used in crypto-asset marketing
Which type of product is prohibited from all forms of advertising under the loi Sapin 2?
The loi Sapin 2 absolutely prohibits advertising for crypto-asset derivatives such as CFDs and binary options. This ban was confirmed by an AMF decision of July 2, 2019, as these products carry high risks for unsophisticated investors.
What is the penalty for an unregistered DASP that engages in promotion in France?
Under Article L.572-23 of the Code monétaire et financier, an unregistered DASP may not legally engage in any form of promotion. The penalty is two years of imprisonment and a €30,000 fine. This provision aims to protect investors against risks associated with unregulated operators.
What is the maximum fine for electronic advertising inviting people to request information about an unlicensed service?
Article L.222-16-1 of the Consumer Code provides for a fine of up to €100,000 for this offense. This provision aims to protect consumers against deceptive solicitation for unregulated services.
What condition must an influencer meet to legally promote an ICO in France?
An influencer may only promote an ICO if the issuer holds an AMF visa. This requirement ensures that only regulated ICOs are promoted, thereby protecting investors against fraud risk.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Permitted practices
Prohibited practices
Regulation clearly distinguishes between permitted practices (such as standard advertising for registered DASPs) and prohibited practices (such as targeting minors or promising guaranteed gains). This classification helps avoid sanctions.
Maximum penalty for a non-compliant influencer
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The law of June 9, 2023, provides for penalties of up to €300,000 in fines and two years of imprisonment for misleading commercial practices. Additionally, the influencer may be banned from exercising their activity. The Nabilla case (2021) illustrated this sanction with a settlement fine of €20,000.
A registered DASP may legally use sponsorship to promote its services in France.
Only licensed DASPs may use sponsorship. Merely registered DASPs cannot use this promotional method. Solicitation and patronage are also reserved for licensed DASPs under French regulations.
An advertisement for crypto-assets may present their use as a risk-free game.
The ARPP recommendation expressly prohibits presenting the use of crypto-assets as a game or drawing analogies with gambling. This rule aims to prevent trivializing the risks associated with these volatile assets.