Spain on Monday moved to regulate widespread advertising of crypto assets, including by social media influencers, instructing the stock market supervisor to allow mass campaigns and ensure investors are aware of the risks. .
The rapid growth of cryptocurrencies and digital assets tied to traditional currencies has caught the attention of regulators around the world, who fear they could put the financial system at risk if left unchecked.
The Spanish government has stated in its official bulletin that advertisers and companies that market crypto assets will have to inform the CNMV watchdog at least 10 days in advance of the content of campaigns targeting more than 100,000 people.
The new regulations will come into effect from mid-February and will allow the CNMV to specifically monitor advertising for all types of crypto assets and include warnings about the risks associated with such an investment.
The rules also apply to crypto-asset service providers when advertising their business and anyone advertising on their own behalf or on behalf of third parties.
These include influencers with more than 100,000 followers who are paid to advertise and promote crypto assets, the CNMV said in a statement, adding that they will need to pre-notify the publications watchdog. promotions and warn of risks.
In November, the CNMV reprimanded soccer star Andres Iniesta after he promoted cryptocurrency exchange Binance on his Twitter and Instagram accounts, telling him he should be fully informed about crypto -currencies before investing in them or recommending others to do so.
Cryptocurrencies such as Bitcoin have seen high price volatility accompanied by a significant increase in aggressive advertising to attract investors.
© Thomson Reuters 2022
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