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.

Pavan A
CBW - External Analyst
INDIA