The National Commission for the Securities Market (CNMV) of Spain, amid tightening supervision of cryptocurrencies, begins to regulate the advertising of digital assets on social media pages with more than 10,000 subscribers.
On January 17, CNMV published new rules to “ensure that advertising for cryptocurrency products contains truthful, understandable and non-misleading content that includes a strong warning about the risks associated with digital assets.” The document comes into force on February 17, 2022.
The new version of the rules emphasizes that the cryptocurrency industry is currently not fully regulated, and this increases the risks associated with it. Individuals and companies will be required to include the following information in the advertising message, verbatim:
“Investments in crypto assets are not properly regulated. They may not be profitable for retail investors. All money invested in cryptocurrencies can be lost.”
In addition, the message will have to add an active link to a specific educational resource with an eyeliner: “It is important for the user to carefully read about the risks of cryptocurrency investments, which are explained in detail at the link.”
Under the new rules, popular bloggers with more than 100,000 subscribers will have to submit their advertisements to CNMV for approval at least 10 days before publication.
It is clarified that the rules will apply to “cryptocurrency service providers, advertising service providers and any other natural or legal persons who carry out such activities on their own initiative or on behalf of third parties.”
In November 2021, CNMV warned footballer Andrés Iniesta on Twitter about the risks of investing in cryptocurrencies when he posted photos of himself on Instagram with a laptop with the Binance exchange website open on its screen. In August, CNMV warned cryptocurrency exchanges Huobi and Bybit that they are not authorized to provide investment services or conduct other activities supervised by the Commission. In 2019, Spain’s regulator said that all ongoing ICO projects are working without the approval of the authorities.
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