The French Senate’s Committee on Economic Affairs has approved a new amendment to a pending legislation that will allow registered cryptocurrency companies to hire social media influencers for advertising and promotional purposes. The decision comes as a relief to many in the crypto industry who were concerned about the initial draft of the bill which called for an outright ban on influencer advertising for the crypto industry in France.
The new amendment will allow cryptocurrency companies that are registered with France’s Financial Markets Authority (AMF) to hire influencers for their products. The current wording of the bill is seen as more restrictive than the existing provisions in the Consumer Code, since it excludes the possibility for digital asset service providers (PSAN) registered with the AMF to use commercial influence. The new amendment will introduce this possibility for PSANs registered or approved with the AMF.
The initial iteration of the bill limited the companies who could engage in influencer advertising to only those licensed by the AMF. However, no cryptocurrency company currently meets the required standards for AMF licensing. With this new amendment, registered cryptocurrency companies will be able to tap into the power of social media to promote their products and services.
The decision to allow cryptocurrency companies to hire influencers is seen as a step forward for the crypto industry in France. As the industry continues to grow and evolve, it is important for regulators to strike a balance between protecting consumers and allowing companies to promote their products and services.
The move by the French Senate’s Committee on Economic Affairs is in line with the country’s overall regulatory framework for cryptocurrencies. France has established a regulatory framework for digital asset service providers (DASPs) registration and licensing. This new amendment is a further step in creating a more conducive environment for the crypto industry in France.
