Spanish Regulator Asks Crypto Firms to Submit Requests before Launching Ads

Spain’s National Securities Market Commission (CMNV) has issued an order that asks domestic crypto companies who wish to deploy advertising campaigns targeting over 100,000 people to submit details 15 days before the launch. According to Finanzas, the draft published by the watchdog allows enough time to evaluate if the ads comply with the established requirements to decide on giving the green light or not.

Also, the order states the ruling covers all advertisements run via television, radio, newspapers, online, social media, including influencers who promote any crypto-related products or services. Among the requirements includes that the ads should be transparent, well balanced, impartial, and “not misleading,” the CMNV said.

Previously, the Spanish watchdog warned all crypto companies that if they don’t obtain permission from the authorities to run these ads, it could lead to fines up to $353,000.

The proposal of regulating the ads and passing them through an approval process on a 15-days period came in the wake of the massive ads deployed by Bit2Me. They ran a massive campaign in the streets of Madrid promoting Bitcoin (BTC) with catchphrases like “The revolution has just begun. Welcome to Bitcoin.” In fact, it raised the alarms among the watchdog, who later reinforced the rules on cryptos and warning consumers that these kinds of ads are promoting investment products that carry high risks of losing money.

Including Disclaimers in the Ads

That’s why the CMNV asked the crypto companies to include a disclaimer in the advertising campaigns, telling people that crypto assets “are not regulated and cannot be suitable for retail investors, facing risks of losing the total amount of the investment.”

At the end of May, the Spanish Congress of Deputies has voted in favor of a law that requires Spaniards to report their overseas cryptocurrency holdings through tax filings, arguing that the new ruling goes in line with the current circumstances surrounding the crypto markets.

Source: Read Full Article