The Economic Affairs Committee of the French Senate passed a recent amendment to pending legislation, enabling registered cryptocurrency companies to use social media influencers for advertising and promotion.
The revised wording would enable companies that are registered with France’s Financial Markets Authority (AMF) to employ influencers for their products, according to a translation of the amendment provided by Bing.
The statement asserts that the present phrasing is more limiting than the prevailing clauses in the Consumer Code. This is because it precludes the ability of digital asset service providers (PSAN) that have enrolled with the Financial Markets Authority (AMF) to exert commercial influence. The proposed revision aims to enable PSANs registered or authorized by the AMF to exert commercial influence.
In its first form, the relevant measure demanded what amounted to an outright prohibition on influencer marketing for the crypto business in France. Its terms restricted the companies that may use influencer marketing to just those that were authorized by the AMF, a standard that no cryptocurrency company currently fits.
According to an educational blog post by Paris-based law firm Beaubourg Avocats, the regulatory framework for cryptocurrency in France is primarily based on two regimes: the token sale or ICO (Initial Coin Offering) visa and the registration and license of Digital Assets Service Providers (DASPs).
It is mandatory by law for any cryptocurrency firm doing business in France to register with the AMF. As of now, none of them have obtained the required licenses to work lawfully in the country as influencers for product promotion.
With the amendment’s new language, the licensing requirement would no longer apply, enabling companies that are only AMF-registered to pay influencers for social media promotion.
According to Crypto Twitter, this move is seen as beneficial for both the cryptocurrency markets and French influencers.
However, it should be noted that the change has not yet been ratified. In addition to several other modifications, the entire Senate must approve the proposed amendment in a plenary session before the National Assembly can approve it.