The Economic Affairs Committee of the French Senate recently approved an amendment to pending legislation that would allow registered cryptocurrency companies to hire social media influencers for advertising and promotions.
According to a translation of the amendment provided by Bing, the new wording will allow companies registered with the French Financial Markets Authority (AMF) to hire influencers for their products: “The current wording is more restrictive than the existing provisions in the Consumer Act, as it excludes the possibility of commercial leverage being used by Digital Asset Service Providers (PSANs) registered with the Authority for Financial Markets (AMF). The amendment therefore introduces this possibility for PSANs registered or approved with the AMF."
In its original version, the bill's requirements essentially amounted to an outright ban on influencer advertising in the French cryptocurrency industry. Its wording limits the companies that can engage in influencer advertising to those licensed by the AMF, a condition that no cryptocurrency company currently meets. As noted by Paris-based law firm Beaubourg Avocats in an educational blog post, “France has established a regulatory framework for cryptocurrencies that relies primarily on two institutions: token sales or ICOs (initial coin offerings).” Visa and Digital Ass et Service Provider ( 'DASPs') registration and licensing."
The law requires all cryptocurrency companies operating in France to be registered with the AMF. So far, none have obtained the necessary licenses that would allow them to hire influencers to legally promote their products domestically. The language change in the amendment would remove the licensing requirements , allowing only companies registered with the AMF to pay influencers to promote on social media.
Crypto Twitter appeared to hail the news as a positive step for French influencers and the cryptocurrency market.
