2022-1-20 21:46 |
Spain has become the latest country to introduce restrictions to crypto advertisements. A report unveiled this news on January 17, noting that this move makes Spain the first nation in the European Union (EU) to crack down on crypto promotions.
Reportedly, the oversight of crypto advertisements will fall under the regulatory scope of the National Securities Market Commission (CNMV) of Spain.
According to the report, the new rules will apply to crypto companies, marketing firms hired by crypto companies, and influencers.
With influencers being the primary target, CNMV mandates them to disclose whether they were paid to promote crypto products. If the promotions are paid for, the regulator needs the influencers to include clear, balanced, impartial, and non-misleading statements about the risks associated with cryptos.
Moreover, the CNMV requires any influencer or outlet with over 100,000 followers to issue a notice 10 days before promoting cryptocurrencies.
Failure to adhere to these rules will subject influencers and companies to a fine of as much as $342,000.00 (£250,680.87).
Staying ahead of the packCommenting on this development, Rodrigo Buenaventura, the head of CNMV,
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 added that these restrictions will be entirely new for the CNVM and the country’s crypto space and will likely result in some friction. However, Buenaventura believes things will eventually smoothen out, adding that introducing rules in an unregulated industry always comes with complications.
He further noted that other EU member states will soon embrace similar measures and that Spain decided to act early instead of waiting for the EU’s guidance like other countries.
Reportedly, Spain decided to start regulating crypto advertisements after football star Andres Iniesta promoted Binance, the largest crypto exchange, on Twitter.
Estoy aprendiendo cómo empezar con las criptomonedas con @BinanceES #BinanceForAll
I’m learning how to get started with crypto with @binance #BinanceForAll pic.twitter.com/3Km58KrnPG
This news comes on the heels of Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), directing crypto companies to stop advertising their products and services to the public.
MAS, however, allowed the companies to advertise their products on their corporate websites, official social media platforms, and mobile applications provided they do not trivialize the risks of embracing crypto.
The UK’s Advertising Standards Authority (ASA) also banned advertisements from several companies, including but not limited to Crypto.com, Coinbase, Papa Johns, and eToro, in December last year. At the time, ASA said the ads were irresponsibly taking advantage of consumers’ inexperience and failing to illustrate the risk of the investment.
With investors suing personalities like Kim Kardashian and Floyd Mayweather for promoting EthereumMax (EMAX), a cryptocurrency that has lost 97% of its value since its promotion, it is only a matter of time before more regulators start clamping down on crypto advertisements.
The post Spain cracks down on crypto ads; Influencers to face $340K fines appeared first on Invezz.
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