The new rule requires social media influencers who promote cryptocurrency to obtain pre-approval before posting content.
Spanish regulators announced today that they will impose new guidelines on cryptocurrencies a month from now. In accordance with the updated Policy Guidelines, purported influencer promotions will be limited to first European Union (EU) member states.
According to research published today by the Spanish Securities and Exchange Commission (CNMV), Spain has “advertising products and services.Content that is real, easy to understand and not misleading, with prominent warnings of the risks associated with it..”
Major changes have been made to the new policy
When the new policy takes effect around the middle of next month, influencers and their sponsors involved in crypto ads will need to notify the CNMV before their ads air. The requirement also requires the advertiser to state the risks associated with the advertisement.
The report explained that influencers targeted with more than 100,000 followers need to provide this notice at least 10 days before the ad is published. The new rules apply to crypto service companies, advertising companies, and all entities that display advertisements for themselves or third parties.
Non-compliant companies or entities risk being fined up to €300,000.
The report also warned that Spanish crypto assets remain unregulated and not suitable for individual investors as they risk losing their entire investment.
Regarding the need for regulation, CNMV President Rodrigobu Enaventura explained the use of social media influencers to promote cryptocurrencies as a backdoor to circumvent regulation. This is because these new advertising channels do not share the same rules as other traditional media.
“”If influencers are not covered, there will be a back door to circumvent regulations. ” Buenaventura He said financial times.
Andres Iniesta Binance Post
One of the motivating factors behind CVNM’s announcement of the new regulation is football star Andres Iniesta, which was published in November. A Spanish professional footballer and former Barcelona midfielder has sent tweets that appear to lure users into a cryptocurrency exchange.
“Learn how to start crypto with Binance #BinanceForAll, “Iniesta I have writtenI attach a picture of him to the text, and he may have completed a deal on the exchange.
CVNM responded to a tweet that reached Iniesta’s 25 million followers, warning the World Cup winners:Crypto assets, which are unregulated products, carry some significant risks…but according to ReutersThere was no indication that Iniesta was paid to post the tweet.
Spain’s move to include crypto marketing in social media will almost certainly attract the attention of other countries trying to define their stance on crypto advertising.
Notably, the UK’s advertising regulator, the ASA, banned seven crypto ads in mid-December, calling the cryptocurrency a “red alert priority issue.” Countries other than Europe do the same. Singapore today placed new restrictions on encrypted ads directed to the general public.