This Monday, Spain decided to bring advertising around crypto assets under control, especially that carried out by influencers. From now on, the stock market watchdog will be in charge of authorizing mass campaigns. It will also have to ensure that investors are fully aware of the risks involved.
Crypto influencers targeted
The National Securities Market Commission (CNMV) said in an official bulletin that the Spanish Gendarme would now have to be informed at least 10 days in advance about the content of campaigns targeting more than 100,000 people.
This new framework concerns :
- companies trading in cryptoassets
“The CNMV may require from the natural or legal persons concerned, specific information on the campaigns or advertising elements in order to assess compliance with the requirements of this circular. This type of request must be met within three working days.”Official Bulletin of January 17, 2022
This regulation will also apply to crypto asset service providers promoting their activities and anyone advertising alone or on behalf of others.
We’re not kidding about the risk
For CNMV president Rodrigo Buenaventura, there is risk in advertising. Likewise, he perceives “correct and timely” the measure of regulation of advertising. The introduction of rules is intended, among other things, to frame the promotion of cryptocurrencies by influencers.
The controversy aroused at the end of 2021 by several footballers is certainly for something. Andrés Iniesta or Luis Suarez had notably promoted the exchange Binance without warning about the risks.
Fines for non-compliance will be capped at €300,000. They could come down on crypto companies, PR firms, and even individual influencers.
These new rules will go into effect in mid-February. They will allow the CNMV to specifically monitor the advertising of all types of assets and include warnings about the risks associated with such investment.
The rapid growth of cryptocurrencies and stablecoins has caught the attention of regulators around the world. Driven by the fear of a financial system being undermined, they see regulation as paramount. At the same time, Spain was asserting its position as the European leader in the number of bitcoin distributors.