Spanish regulators have cracked down on cryptocurrency advertising
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As reported by the Financial Times, Spain has taken
a hard stance on cryptocurrency advertising campaigns, including tough fines
for companies that do not comply. The National Securities Market Commission
(CNMV) has launched a crackdown on cryptocurrency advertising.
CNMV head Rodrigo Buenaventura told the Financial Times in an interview, “We are very excited about how this will bring some order to how crypto is promoted, not just through traditional media but also through influencers.”
He adds, “This is new terrain, for us and for them, and there will be moments of friction, but that always happens when you bring in rules for something that wasn’t regulated before.”
The new rule will require all cryptocurrency advertisements to carry a warning from next month in response to investor concerns about being defrauded by bogus claims. Influencers, crypto companies, and marketing firms hired by crypto companies are covered by these new rules.
This is part of a package of measures introduced by the CNMV to regulate the cryptocurrency sector in Spain, a measure that is seen as ground-breaking in Europe. It requires digital asset services providers, including those who receive payments for promoting crypto, to communicate with the agency about advertising and issue disclosures along with such advertisements.
Influencers must therefore make "clear, balanced, impartial, and non-misleading" statements regarding cryptocurrency risks if Spain's new rules are to apply.
Last summer, two crypto exchanges, Houbi and Bybit, were warned about operating without a license. The CNMV took to Twitter to rebuke Andres Iniesta, the Spanish footballer for claiming to use the exchange firm Binance.
Several companies, including Crypto.com, Coinbase, and Arsenal Football Club, have been taken action upon by the Advertising Standards Authority due to their crypto ads.
MAS, Singapore's financial regulator, has also enacted rules concerning how crypto ads reach the general public. Recent lawsuits have been filed against Kim Kardashian, Floyd Mayweather, and Paul Pierce because they are known influencers of crypto.
CBW - External Analyst