Spain’s Regulator Sets New Rules for Cryptocurrency Advertisement

Digital asset ads in Spain will have to include a designated warning from February 2022, according to a new release from the Comisión Nacional del Mercado de Valores (CNMV).

• The paper outlined the new rules on Monday, January 17th, indicating that the watchdog wants to “ensure that the advertising of the products offers true, understandable, and non-misleading content, and includes a prominent warning of the associated risks.”
• It added that the cryptocurrency industry is non-regulated as of now, which could increase the associated risks. As such, individuals and outlets that advertise such services will have to include the following message at each post:

• “Investments in crypto assets are not regulated. They may not be appropriate for retail investors, and the full amount invested may be lost.”

• The post should also include an additional link or explanation, informing, “It is important to read and understand the risks of this investment, which are explained in detail at this link.”
• From now on, influencers with more than 100,000 followers should provide their planned advertisements to the CNMV at least ten days ahead of the publication for approval.
• The report explained that these rules will apply to “crypto asset service providers, advertising service providers, and to any other natural or legal persons who carry on such activity on their own initiative or on behalf of third parties.”
• The circular will become effective a month from now – on February 17th, 2022.
• Spain’s regulator issued a warning against two popular crypto exchanges last summer – Huobi and Bybit. It alleged the duo for operating without a license.