The French Senate’s Committee on Economic Affairs recently approved an amendment to pending legislation allowing registered cryptocurrency companies to hire social media influencers for advertising and promotional purposes.
According to a translation of the amendment provided by Bing, the new wording would allow companies that are registered with France’s Financial Markets Authority (AMF) to hire influencers for 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.”
In its original iteration, the bill in question called for what essentially amounted to an outright ban on influencer advertising for the crypto industry in France. Its wording limited the companies who could engage in influencer advertising to only those licensed by the AMF, a bar no cryptocurrency company currently meets.
As Paris-based law firm Beaubourg Avocats points out 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.”
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.
Related: France mulls fast-tracking registered crypto firms to new EU rules
The change of language in the amendment would eliminate the licensing requirement and thus 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.
⚡️ 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
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.