Due to France’s uncertain ad policies, several F1 teams were unable to bear advertisements for crypto products at the French Grand Prix on Sunday.
Hazy Regulations Prompt Ad Removals
France’s approach to the advertisement industry, especially regarding fiscal products is still unclear. As a result, several crypto brands were left to bear the brunt on Sunday. At the latest Grand Prix, some F1 teams with decals advertising crypto brands were forced to either keep the company brands hidden or removed entirely for the event.
Despite the increasing clamor for crypto regulation, France is among the ranks of those still lacking clear crypto laws. Understandably, crypto ad placements are one of these.
The Autorité des marchés financiers (AMF) are responsible for regulating crypto and financial markets in France. Its oversight of clear crypto ad laws meant F1 and several racing teams had decisions to make.
Consequently, several crypto advertisements were missing at the French Grand Prix last weekend. Chief among them were Crypto.com’s logos. This is despite the exchange being one of F1’s major sponsors. The major exchange notably penned a $100 million partnership with the Formula 1 last year June.
Asides from Crypto.com’s conspicuous absence, others like crypto lender Vauld and exchange platform OKX, were also missing.
Partners Opt Against Exercising Branding Rights
Crypto sponsorships are rife among F1 teams. As a matter of fact, the majority of the participants (8 out of 10 teams) all had crypto partners. A few, like the Alfa Romeo team, had multiple crypto sponsors.
Alfa Romeo who had partnerships with Vauld and Floki took out all indications of its partnership during the race. The team stated that they were adhering to French regulations. In addition, they also explained that they had been informed that the partnership brands had to have registered with the AMF.
Regardless, teams like Mercedes (FTX) and Red Bull (Tezos) moved on with their ads. Red Bull explained that it had discussed with its legal team before the event.
Meanwhile, a representative from Crypto.com explained the absence of the exchange’s logos at the event. They said Crypto.com eventually decided against utilizing its branding rights during the F1 race on Sunday.
However, Crypto.com will continue its partnership with Aston Martin. As such the platform will exercise the aforementioned branding rights via other means in races to come. The same is true regarding their deal with F1.
Crypto Ad Policies in Other Nations
The recent developments strike a contrast with the forthcoming Austrian Grand Prix. The major sponsor of the next Grand Prix is reportedly CryptoDATA tech, a Romania-based company.
We are incredibly pleased to be officially announcing our partnership with Dorna Sports, thus becoming the first Romanian company representing the official title sponsor of the Austrian @MotoGP – Red Bull Ring.
— CryptoDATA (@CryptoDATA_Tech) July 25, 2022
Outside of France, the regulatory take on crypto ads is widely varied. In Hong Kong, for example, crypto-focused promotions could attract firm punishments. Individuals who market unregistered crypto service providers could meet a charge of up to $50k. Additionally, they could also face up to 6 months of jail time beneath the modified anti-money laundering policy. Essentially, crypto ads in Hong Kong fall under strict regulation.
Ireland on the other hand shared plans in April to adjust its policy regarding the promotion of crypto products. This came as a response to a rise in promotional posts for crypto networks such as Floki.