The regulations will take effect in February and require that crypto-asset promoters inform Spain’s securities watchdog regarding any ads that target more than 100,000 persons.
10-day advance notice rule
The Spanish government has tasked the country’s securities watchdog with authorizing advertisements that promote cryptocurrencies, a report has said. Also, as part of the new measures, crypto-asset investment promoters will be required to notify the Comisión Nacional del Mercado de Valores (CNMV) of any promotional campaign that targets more than 100,000 people some ten days before such a campaign commences.
The regulations are due to go into effect in February and will permit the CNMV monitoring all crypto-related ads. These regulations will allow the watchdog warn investors about potential risks when investing in crypto assets.
The report also stated that any influencers who have more than 100,000 followers would be asked to notify the watchdog about any cryptocurrency-related investments they plan to promote. This requirement also requires influencers with more than 100,000 followers to notify the watchdog of any crypto-related investments that they plan on promoting.
CNMV Supports Influencers
Explaining the government’s decision to start reining in influential individuals that promote crypto assets, the report cites the CNMV’s public rebuke of Spanish footballer Andres Iniesta back in November. Iniesta’s tweet that promoted cryptocurrency trading platform Binance was the reason for this rebuke.
The CNMV scolded the footballer by saying that Iniesta must gather sufficient information on cryptocurrencies prior to making any investments or recommending it to his 38 million Instagram followers and 25 million Twitter followers.
In the meantime, the CNMV’s decision to target influencers that are being paid to promote crypto-asset investments follows reports that U.S. reality television star, Kim Kardashian, and boxing legend Floyd Mayweather Jr., are being sued for their role in promoting Ethereummax and the EMAX cryptocurrency token.
In this lawsuit, the plaintiff accuses both Kardashian — who reportedly routinely gets paid for promotional posts — and Mayweather of helping to create sufficient trading volumes allowing Ethereummax token creators to dump EMAX tokens on unsuspecting investors.
What are your thoughts on Spain’s decision to regulate crypto ads? Let us know your thoughts in the comment section below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.
