Large-scale Spanish Cryptocurrency Ads Require Advance Notification – IT Pro – News

Spain is tightening its surveillance on the promotion of cryptocurrencies. If there are advertisements for a target audience of more than 100,000 people, the Spanish capital market regulator must be informed in advance.

The new regulations are in a Spanish language document van from the National Securities Market Commission, ofwel from National Securities Market Commission from Spain. In the English press release CNMV writes that this regime of prior communication in mass advertising campaigns means that a notification must be made to the regulator at least ten days before publication. If this is not met, fines of up to 300,000 euros can follow.

The circular does not contain any regulations related to the advertised products, their suppliers or the services associated with them. So there is no regulation with regard to direct content. However, it is now prescribed that the campaigns are clear, balanced and fair and do not contain misleading content.

It should also include prominent information about the risks and include a standard worded warning: “Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost.”

The rules apply not only to service providers that trade and advertise in cryptocurrencies, but also to advertising services and natural or legal persons who engage in this type of activity on their own initiative or on behalf of third parties. Influencers are also mentioned. The circular will come into effect on February 17.

Rodrigo Buenaventura, director of the CNMV, says in an interview with the Financial Times very happy with these new rules. According to him, it will bring some order to the way cryptocurrencies are promoted, not only through the traditional media, but also through influencers. Influencers will also have to announce in Spain whether they do their promotion for a fee.

European level

The arrival of these Spanish rules is probably partly the result of the lack of EU rules for the time being. Such regulation is being discussed in a European context and proposals have been made, but no agreement has yet been reached. Buenaventura says Spain and other countries are now deciding not to wait ‘a few more years’ for EU rules.

Spain is about the first European country to establish rules and a regime in this way to specifically regulate the promotion of cryptocurrencies. France Since the end of last year, pay more attention to influencers who promote cryptocurrencies.

Situation in the Netherlands

In the Netherlands, the AFM last month warned about so-called influencers, or influencers who provide financial advice on investments, such as cryptocurrencies. The AFM pointed out to them the rules regarding online publications on investments, but there is as yet no tightly regulated supervision of this market in the Netherlands. However, the AFM recently conducted an investigation into more than 150 influencers. The watchdog concluded that they often use a risky method, often provide investment advice without the mandatory license and promote risky products such as cryptocurrencies.

For the time being, cryptocurrencies are largely outside the scope of financial supervision in the Netherlands, although new rules are in the works. Due to the lack of rules, the watchdog can now do little more than warn about the risks and induce influencers to be transparent about the advantages and disadvantages of a product. The AFM says it is cautious about trading cryptocurrencies ‘because of the strongly fluctuating prices and because cryptocurrencies are vulnerable to deception, fraud and manipulation’.

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