By spreading crypto-related messages, they may be accused of market manipulation, once the MiCa regulation goes into effect.
Will crypto influencers have to review the way they communicate with their community? Section 80 of the MiCa Regulation (for the market in crypto assets) lists “behaviours” that will be considered market manipulation once the regulation takes effect, around 2024.
If the article does not mention any specific profile, then anyone who engages in the practice, and identifies a European source in BFM Crypto, will be targeted. Thus, it seems that crypto-influencers, who post many messages on cryptocurrency (or crypto-related projects) every day, are within sight of Europe.
Patrick Hansen, Circle’s director of European strategy – also known as a specialist in European regulation – disclosed this information for the first time.
Beware of cryptocurrency influencers
The latter tweeted: “Crypto influencers beware: commenting on these assets on social media without revealing any connection to and profiting from these assets will be considered market manipulation in the EU once MiCA comes into effect.”
This practice is defined as “taking advantage of occasional or regular access to traditional or electronic media, issuing an opinion about a crypto asset after taking positions on that crypto asset and then taking advantage of the impact of that opinion on the price of that” crypto asset, without drawing public attention in the same time to this conflict of interest, in an appropriate and effective manner”, defines European regulations.
The idea is to make market manipulation just as reprehensible as it is in traditional finance. Therefore, banning such a practice puts the person who commits it in a position of crime, as our source confirms. Thus, the person who comments on such an offense will be subject to the current legislation, and it will happen to the relevant authorities to take up such a file.
“It’s time for these influencers to get what they deserve”
Evoking this topic has responded to many members of the crypto community, including on the social network Reddit.
“I advertise certain projects and never take responsibility for losses to people. It’s time for these influencers to get what they deserve”, for example, used.
At the same time in France, the Financial Markets Authority (AMF) wants to extend the so-called “responsible” influencer certification to finance and cryptocurrency through 2022. The certification makes it possible to ensure that the influencer follows an awareness course on the organization’s “deotonological recommendations” as well as has proven his good knowledge of the subject which he discusses with his community.
The site is specifically mentioned Financial Services Recommendations From 2017, which refers to the International Chamber of Commerce Law on Advertising and Business Communications.
“Consequently, advertising promises for in-scope products or services must not in any way: reduce risk, portray use of such products or services as a game, or advance the analogy between gambling and the products or services covered by this recommendation.” one to read.
Despite the future implementation of this certification, it is the Directorate General of Competition, Consumer Affairs and Fraud Prevention (DGCCRF) that remains competent when it comes to penalizing influencers in case of derivation.
An investigation conducted by this organization has significantly led to the payment of a A fine of 20 thousand euros by the influencer Nabila Benatia Vergara For “misleading trading practices” on social networks (promoting a trading training site on Snapchat in 2018) accompanied by an advertising metric.