3 - 6 minute read
The French Senate’s Committee on Economic Affairs has recently approved an amendment that will allow registered cryptocurrency companies to hire social media influencers for advertising and promotional purposes. This amendment is a significant shift from the original version of the bill that called for an outright ban on influencer advertising for the crypto industry in France. The bill’s wording limited influencer advertising to only those licensed by the Autorité des Marchés Financiers (AMF), a bar no cryptocurrency company currently meets.
The new amendment allows companies that are registered with the AMF to hire influencers for their products, eliminating the licensing requirement. All cryptocurrency companies operating in France are legally required to register with the AMF. So far, none have received the necessary licensing that would allow them to hire influencers to promote their products in the nation legally.
“The current wording is more restrictive than the existing provisions in the Consumer Code, since it excludes the possibility for digital asset service providers (PSAN) registered with the Autorité des marchés financiers (AMF) to use commercial influence. Consequently, this amendment introduces this possibility for PSANs registered or approved with the AMF.”
According to a translation of the amendment provided by Bing, “The current wording is more restrictive than the existing provisions in the Consumer Code, since it excludes the possibility for digital asset service providers (PSAN) registered with the Autorité des marchés financiers (AMF) to use commercial influence. Consequently, this amendment introduces this possibility for PSANs registered or approved with the AMF.”
Paris-based law firm Beaubuorg Avocats notes that France has established a regulatory framework for cryptocurrency that primarily relies on two regimes: the token sale or ICO (Initial Coin Offering) visa and the Digital Assets Service Providers (DASPs) registration and license. The amendment would allow companies that are simply registered with the AMF to pay influencers for promotion on social media.
Crypto Twitter appears to be hailing the news as a positive step for the French influencer and cryptocurrency markets. However, it is important to note that the change hasn’t been officially ratified yet. The proposed amendment must pass through the full Senate in a plenary meeting before it faces approval by the National Assembly.
⚡️ La commission des affaires éco du @Senat adopte une nouvelle version de la #PPLinfluenceurs :
— Adan (@adan_asso) May 3, 2023
➡️ PSAN enregistrés et émetteurs d’ICO pourront continuer d'être promus
➡️ les activités #Crypto hors champ PSAN (NFT, DeFi…) également
Une étape cruciale avant l'adoption ? pic.twitter.com/i9HpJQlO7H
The implications of this amendment are significant for cryptocurrency companies in France. It opens up a new avenue for them to promote their products on social media without requiring a license from the AMF. This could lead to increased exposure and adoption of cryptocurrencies in France. However, it is essential to keep in mind that regulatory scrutiny of the crypto industry is increasing worldwide, and companies must ensure they adhere to all relevant regulations.
The Bottom Line
The French Senate’s Committee on Economic Affairs has approved an amendment that will allow registered cryptocurrency companies to hire social media influencers for advertising and promotional purposes. This amendment eliminates the licensing requirement and could lead to increased exposure and adoption of cryptocurrencies in France. However, traders must consider the potential risks and opportunities before making any investment decisions.
