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The new rules will be effective from the 17th of February, and non-compliance may attract up to €300,000.
Spain has started placing restrictions on crypto promotions by influencers in an attempt to control crypto marketing- an apparent first for the EU. The agency in charge of financial regulation of the securities markets in Spain, the Comisión Nacional del Mercado de Valores (CNMV), published new rules to govern influencer crypto posts. Tilted “NEW CNMV CIRCULAR ON THE ADVERTISING OF CRYPTO-ASSETS FOR INVESTMENT PURPOSES,” the press release specified what the government expects on influencers promotions on crypto in Spain.
Spain Impose Restrictions on Crypto Ads
According to the release on the 17th of January, any posts in Spain that promote crypto in must include a disclaimer that states:
“Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”
The purpose of the crypto advertising circular is to ensure that advertisers make their content clear and non-misleading. At the same time, the Spanish government wants influencers to include warnings associated with crypto reading while advertising. The governing rules are important in the crypto space, considering the lack of solid regulation that protects investors. Influencers or outlets in Spain with over 100,000 followers will now begin to inform the CNMV ahead of posting any content on crypto. The influencers must notify the agency ten days ahead prior to posting day.
The new rules will be effective from the 17th of February, and non-compliance may attract up to €300,000. Henceforth, advertising activity in Spain must be subject to the new rules, principles, and criteria.
The CNMV head, Rodrigo Buenaventura, believes that the new step will govern crypto promotion through traditional media and influencers. He added:
“If influencers weren’t covered there would be a backdoor 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.”
More Countries Take Steps Crypto Ads Regulation
Although this is a first of its kind from a European country, some countries have moved towards issuing guidelines to curb crypto advertisements. While some are still in the process, other countries have already set rules to govern advertising by crypto firms. The UK’s Advertising Standards Authority says that crypto regulation is a “red alert” priority. Hence, the Authority is in the process of releasing new guidelines for the crypto industry.
On the other hand, Singapore has placed restrictions on crypto advertisements to the general public. Also, the guidelines in Singapore forbid crypto firms from advertising their services through third parties such as social media influencers. As such, the companies may only advertise and market their products and services on their websites. They may also make use of their mobile apps and official social media accounts for promotions. The Singapore central bank further stated that crypto ATMs should not be available t the public. According to the financial institution, crypto ATMs can mislead the public to trade crypto on impulse.