In a recent development, the French Senate’s Committee on Economic Affairs has approved an amendment to pending legislation, permitting registered cryptocurrency companies to hire social media influencers for promotional purposes. This marks a shift in stance compared to the original bill that significantly restricted influencer advertising for the crypto industry in France.
Originally, the bill proposed that only companies licensed by France’s Autorité des Marchés Financiers (AMF) could engage in influencer advertising, a criterion not met by any current cryptocurrency company. This constraint seemed to place an unfair burden on crypto companies, given the rising prominence and impact of social media influencers on public opinion and consumer decisions.
According to the revised amendment, digital asset service providers (PSAN) registered with the AMF will now be allowed to use commercial influence. This will provide registered cryptocurrency companies access to a powerful marketing tool that is potentially capable of reaching large audiences and influencing consumer choices. The new language in the amendment discards the licensing requirement, therefore enabling registered companies to legally pay influencers for promoting their products on social media.
However, this development raises several concerns as well. Allowing social media influencers to promote cryptocurrency companies could potentially expose inexperienced investors to high-risk investment opportunities. In a sector marked by rapid fluctuations and high levels of unpredictability, the involvement of influencers might lead to misinformation and impulsive investment decisions.
It is worth noting that France has a regulatory framework in place, consisting of two regimes: the token sale or ICO (Initial Coin Offering) visa and the Digital Assets Service Providers (DASPs) registration and license. Though all cryptocurrency companies operating in France are required to register with the AMF, none have received the necessary licensing to legally hire influencers to promote their products in the country.
The reaction to this amendment has largely been positive, with the French influencer and cryptocurrency markets seeing it as a step forward. The change presents new opportunities for collaboration between cryptocurrency companies and social media influencers, potentially leading to increased investments and heightened popularity of cryptocurrency in France.
In conclusion, while the amendment’s approval could offer significant growth opportunities for the French cryptocurrency market and pave the way for more visibility of digital assets, it also poses several challenges regarding consumer protection and responsible advertising. It remains to be seen how both the influencer and cryptocurrency industries will adapt to navigate these challenges in the future.