It is already standard practise in the industry to use well-known influencers for crypto marketing efforts, but what does the regulation think?
Regulating cryptocurrency in terms of influencer marketing
Celebrities who have lately promoted cryptocurrency, NFT, or exchanges on their social media pages or through other methods include Steph Curry, Tom Brady, and Kim Kardashian. Celebrities and artists are now routinely utilised in cryptocurrency marketing campaigns.
The approach is used by both established businesses and start-ups, who frequently employ influencer marketing to advertise their initiatives on conventional social media sites. Yet, due to the implementation of regulations involving the promotion of financial instruments or goods, several of these celebrities have encountered substantial issues with industry regulators, notably in the United States.
Regulation of cryptocurrency marketing and financial instruments
When tokens supplied on a platform take the form of financial goods or instruments, or have the potential to take that form, the question of online marketing in Italy becomes pertinent from a legal standpoint. In this instance, offering via remote means of communication, which includes the Internet, is subject to a number of requirements and limits.
CONSOB is in charge of overseeing this activity and is also tasked with prosecuting any operations involving the unauthorised selling of goods or financial instruments through the internet.
However, the laws make clear that just advertising does not qualify as an offer made over a distant communication method and is therefore exempt from the restrictions listed above.
promoting cryptocurrency and the MiCA
At least in its most recent draught, the Regulation on Crypto Markets (so-called MiCA) controls marketing initiatives connected to cryptoasset offers. In particular, the MiCA regulations demand that the information supplied in connection with promotional efforts be fair, clear, and not misleading, and that it be consistent with that presented in the corresponding white paper for the offered product.
The European Commission recently responded to a written question (Question E-004040/2022) made in the course of the European Parliament’s discussion of the proposed rule by restating and confirming the aforementioned.
In fact, the Commission recalled that the MiCA’s rules are sufficiently inclusive to include activity that may be mistaken for selling, promoting, or advertising cryptocurrency. Supervisors may manage crypto marketing efforts thanks to MiCA.
cryptocurrency marketing service
The European Commission also mentions the regulations on “crypto placement services” in response to the aforementioned query, noting that this service is described as
“the marketing of cryptocurrency to purchasers on behalf of or in the interest of the offeror or a party associated to the offeror.”
The MiCA includes the cryptocurrency placement service under its list of regulated services. As a result, everyone that conducts crypto placement is required to comply with MiCA’s licencing requirements in addition to following the guidelines regulating placement methodology.
While engaging in influencer marketing, use prudence.
For those who, as creators or influencers, intend to carry out advertising or promotional activities with regard to cryptocurrencies or platforms that specialise in their trading, the application of the rules on offering financial products or instruments through remote communication techniques, as well as future obtaining authorization under the MiCA, is an important and especially onerous consequence.
On the other hand, influencer marketing campaigns’ current significance in the promotion of high-tech goods and services is well recognised. Hence, in order for influencer marketing activities to be legally carried out, they must adhere to the restrictions set forth in both present law and any future MiCA regulations.
