The new rules come into effect on February 17th and non-compliance can result in fines of up to €300,000.
Spain has started restricting crypto advertising by influencers in a bid to control crypto marketing in an apparent first for the EU. The authority responsible for the financial regulation of securities markets in Spain, the Comisión Nacional del Mercado de Valores (CNMV), has published new rules regulating influencer crypto posts. Titled “NEW CNMV CIRCULAR ON THE PROMOTION OF CRYPTOCASSETS FOR INVESTMENT PURPOSES,” the press release specified what the government expects from influencer promotions for crypto in Spain.
Spain imposes restrictions on crypto advertising
According to the Jan. 17 publication, all posts in Spain promoting crypto must include a disclaimer stating:
“Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested could be lost.”
The purpose of the Crypto Advertising Circular is to ensure that advertisers make their content clear and not misleading. At the same time, the Spanish government wants influencers to include crypto-reading warnings in their advertising. Rules in place are important in the crypto space given the lack of robust regulation to protect investors. Influencers or outlets in Spain with over 100,000 followers will now start informing the CNMV before publishing content on crypto. The influencers must notify the agency ten days before the posting day.
The new rules come into effect on February 17th and non-compliance can result in fines of up to €300,000. From now on, promotional activities in Spain must be subject to the new rules, principles and criteria.
CNMV boss Rodrigo Buenaventura believes the new move will regulate crypto promotion through traditional media and influencers. He added:
“If influencers weren’t covered, there would be a back door to bypass regulation. This is new territory, for us and for them, and there will be moments of friction, but that always happens when you introduce rules for something that wasn’t previously regulated.”
More countries are taking steps to regulate crypto advertising
Although this is the first of its kind in a European country, some countries have moved to issue guidelines to curb crypto advertising. While some are still in the process, other countries have already set rules for advertising crypto companies. The UK’s Advertising Standards Authority says crypto regulation is a “red alert” priority. Therefore, the authority is in the process of issuing new guidelines for the crypto industry.
On the other hand, Singapore has imposed restrictions on crypto advertising to the general public. Also, guidelines in Singapore prohibit crypto firms from promoting their services through third parties such as social media influencers. As such, the companies are only allowed to advertise and market their products and services on their websites. You can also use their mobile apps and official social media accounts for promotions. The Central Bank of Singapore further stated that crypto ATMs should not be open to the public. According to the financial institution, crypto ATMs can lure the public into impulsive crypto trading.
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Ibukun is a crypto/financial writer interested in sharing relevant information using non-complex words to reach all types of audiences. Besides writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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