Spain cracks down on crypto ads – influencers included
Spain has moved to tighten regulations on the advertising of crypto assets, including by social media influencers, and stating that ads must carry an embedded warning to investors on all possible profit loss.
The Spanish government said that all advertising by companies and individuals that markets crypto assets will now be required to notify the Spanish National Securities Market Commission (CNMV) at least 10 days before releasing campaigns that target more than 100,000 people.
The new regulations will commence Mid-February and will give the CNMV powers to monitor the advertising of all types of crypto assets and the inclusion of warnings about the risks involved with investing in it.
The changes come after the CNMV publicly criticised Spanish Footballer Andrés Iniesta last year for promoting cryptocurrency exchange Binance on his social media accounts. The watchdog responded on Twitter with “crypto assets, being unregulated products, carry some significant risks.”
Chairman of the CNMV Rodrigo Buenaventura explained to The Daily Aus the specific inclusion of influencers in the latest regulations: “If influencers weren’t covered there would be a back door to avoid regulation. 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.”
This firmer grip over crypto regulations is the only latest move by law makers worldwide who have expressed concerns surrounding the rapid growth of cryptocurrencies and digital assets against traditional currencies. The decentralisation of the crypto market probes the fear of its risk to the global financial system if not monitored.