France to allow crypto Influencer Promotion
The French Senate’s Committee on Economic Affairs has recently given the green light to an amendment on pending legislation that would permit cryptocurrency firms registered with the country’s Financial Markets Authority (AMF) to employ social media influencers for promotional and advertising campaigns.
As per the amendment translated by Bing, the new phrasing would enable companies to hire influencers to endorse their products:
“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 Financial Markets Authority (AMF) to use commercial influence. Consequently, this amendment introduces this possibility for PSANs registered or approved with the AMF.”
The original iteration of the bill intended to place a total ban on influencer advertising in the crypto industry in France. The existing text only permitted companies with an AMF license to engage in influencer advertising, something that no cryptocurrency company currently meets.
As Beaubourg Avocats, a Paris-based law firm, highlights in an educational blog post, “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.” It’s important to note that the proposed amendment has yet to be officially ratified. Besides a string of other changes, the proposed amendment will have to clear the full Senate in a plenary session before it can earn the National Assembly’s approval. “It does however bear mention that the change hasn’t been officially ratified yet. Along with a series of other revisions, the proposed amendment must pass through the full Senate in a plenary meeting before it faces approval by the National Assembly.”