Spain announces new rules to control crypto ads

Spain has come out with regulations to control rampant advertising of crypto assets, including by social media influencers. The new regulations will start from mid-February, a media report said.  

As per Endgadget, influencers and other advertisers with more than 100,000 followers in the country must notify the National Securities Market Commission about the content at least 10 days before running or endorsing any advertisement. If an influencer or platform fails to do so, they can face a fine of up to €300,000 (around $342,000).

As per the new circular, the promotions about cryptos shall include clear, balanced, fair and non-misleading content and information on the risks in a prominent manner, as well as the following warning: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost”.

“If influencers weren’t covered there would be a backdoor to avoid regulation,” CNMV chief Rodrigo Buenaventura was quoted as saying by The Financial Times. “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,” he said.