Uncertainty over French laws prompted F1 racers to remove crypto tag: Report

by · July 26, 2022

Many international Formula 1 racing teams have reportedly removed or covered up the branding and logos of crypto-related sponsors in response to uncertainty over France’s advertising rules.

According to a Tuesday report from RacingNews365, Crypto.com’s logos were not on display during the French Grand Prix on Sunday — the crypto exchange has been a global partner of the racing series starting in July 2021. The team behind the Alpine Formula 1 car has also reportedly removed branding representing the crypto exchange Binance from the cars, the drivers’ clothes and stationery.

“Knowing about the regulations here in France as for cryptocurrency, after discussions with our partner, it was decided to avoid advertising on French soil,” said a spokesperson for the Italian F1 team AlphaTauri, which partnered with blockchain platform Fantom Foundation in January.

Luxury carmaker Alfa Romeo, which competed in the French Grand Prix, has reportedly removed branding related to crypto lender Vauld and meme cryptocurrency Floki Inu (FOLKI), citing possible legal concerns:

“The team complies with all French regulations regarding crypto partner advertising on the car. We have been informed that in order to display a cryptocurrency partner logo in France, the cryptocurrency brand must be registered with the AMF, which is not the case of two of our cryptocurrency partners.”

The AMF, or Autorité des Marchés Financiers, announced on July 21 that it would work with France’s professional advertising authority to amend its existing regulations to include crypto-related ads. The regulator asked for recommendations on token offering ads, adding that digital asset providers should include information about the possible risks of crypto investments.

Due to the apparent vagueness of the AMF’s statement, many of the F1 teams still showed signs of their crypto sponsors at the event. Red Bull Racing, which was sponsored by Tezos and also received a $150 million sponsorship from Singapore-based crypto trading platform Bybit in February, reportedly had both firms’ logos on its car during the French Grand Prix, and said its legal team had discussed the case.

Related: Crypto ‘en français’: Cointelegraph France is now live

McLaren Racing, in partnership with crypto exchange OKX, took similar actions. Mercedes, sponsored by crypto exchange FTX, and Ferrari, by blockchain firm Velas, reportedly went ahead to display branding and logos as well. A Ferrari spokesperson suggested that the AMF’s regulatory area may not apply to the Velas:

“Velas Network AG informed us that they do not offer services that require registration […] Therefore, there is no advertising ban with regard to the use of the Velas logo on the Scuderia Ferrari assets within the framework of the French GP.”

Many global regulators have scrutinized ads for crypto products and services as the space grows. In January, Spain’s financial regulator announced that it would require advertisements to be “clear, balanced and fair” while providing information about the risks surrounding crypto investments. The UK’s Advertising Standards Authority also banned certain ads from firms including Coinbase, Kraken and Crypto.com for allegedly “failing to illustrate the risks of the investment.”