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The French Senate Committee on Economic Affairs recently approved an amendment to pending legislation to allow registered crypto companies to hire social media influencers for advertising and publicity purposes.
According to a translation of the amendment provided by Bing, the new language will allow companies registered with the French Autorité des Marchés Financiers (AMF) to hire influencers for their products:
“The current wording is more restrictive than the existing provisions in the Consumer Code as it excludes the possibility for Digital Asset Service Providers (PSANs) registered with the Autorité des Marchés financiers (AMF) to exercise commercial influence. Therefore, this amendment introduces this capability for PSANs registered or approved by AMF.”
In its initial iteration, the bill under consideration called for what was essentially a complete ban on influencer advertising for the cryptocurrency industry in France. Its wording limited companies that could engage in influencer advertising to only those licensed by the AMF, and currently no cryptocurrency company is found.
As Paris-based law firm Beaubuorg Avocats points out in its educational blog: “France has established a regulatory framework for cryptocurrencies that relies mainly on two regimes: the token sale or ICO (Initial Coin Offering) visa and Digital Asset Service Providers (“DASPs”). ”), registration and license”.
All crypto companies operating in France are required by law to register with the AMF. So far, none of them have received the necessary license that would allow them to hire influencers to legally promote their products in the country.
Related: France mulls accelerated tracking of registered crypto firms under new EU rules
The change in language in the amendment would remove the licensing requirement and thus allow companies that are simply registered with the AMF to pay influencers to promote themselves on social media.
Cryptocurrency Twitter seems to welcome the news as a positive move for the French influencer and the cryptocurrency markets.
➡️ PSAN enregistrés et emetteurs d’ICO pourront continuer d’être promus
➡️ les activites #Crypto hors champ PSAN (NFT, DeFi…) également
Une étape cruciale avant l’adoption? pic.twitter.com/i9HpJQlO7H
— Adan (@adan_asso) May 3, 2023
However, it is worth mentioning that the change has not yet been officially ratified. Along with a number of other amendments, the proposed amendment must pass through the entire Senate in plenary session before it is approved by the National Assembly.