Formula 1 teams have been forced to comply with the laws of advertising in France, which prohibits displaying ads of crypto firms not registered with the AMF.
Advertising Laws Cripples Crypto Advertisement
With the French Grand Prix looming in the distance, Formula 1 teams have been flaunting their crypto sponsorships and brand deals by openly displaying their ads. This included decals with the logos of these crypto sponsors. However, the French authorities have dictated that the teams must comply with the country’s stringent advertising laws. In France, any crypto firm wishing to advertise itself must register as a . Therefore, many F1 teams have had to take down crypto ads and logos of crypto partners from their race cars.
France has always had stringent laws about advertising. Despite being one of the most welcoming countries for crypto adoption, the law still decrees that in order to advertise their services or products in the country, all crypto firms should be registered as a Digital Assets Services Provider (DASP) with the Autorité des Marchés Financiers (AMF), the financial authority of the country.
Teams And Their Crypto Sponsorships
Eight of the ten teams that entered the French Grand Prix had one or multiple partnerships with crypto companies. All of them were instructed to rework the branding on their cars, the team outfits, racing gears, and other items to eliminate any mention of cryptocurrencies. For example, the Alfa Romeo F1 team has removed the branding for its partners – cryptocurrency Floki Inu and crypto lender Vauld from all displayable surfaces for the French Grand Prix. The team explained its decision to do so, saying,
“The team is complying with all French regulations with regard to crypto partner advertising on the car. We have been advised that, in order to display a cryptocurrency partner logo in France, the cryptocurrency brand must be registered at the AMF, which is not the case for two of our cryptocurrency partners.”
Another team participating in the race, Red Bull Racing, had partnered with Tezos to build an NFT fan experience. Due to the French advertising restrictions coming into the light, the Red Bull Racing team has also had to involve its legal team and bring the matter to the attention of its crypto partners.
Crypto.com And F1
However, the most noteworthy of all crypto partnerships involved in the matter is the sponsorship deal between F1 and Crypto.com, which has been a global partner for the racing series since July 2021. The crypto exchange was also the title sponsor of the recently held Miami Grand Prix. However, the company has disclosed that it has decided not to utilize its branding rights for this leg of the competition.
The spokesperson for Crypto.com also added,
“But it remains F1’s global partner and we expect such rights to be leveraged in other ways at future races.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.