The National Securities Market Commission (CNMV) of Spain has been given the authority to regulate crypto advertising for the first time in the European Union.
Spain gears up to crack down influencers and their sponsors
As European authorities struggle to maintain track of unregulated industries, Spain has imposed restrictions on influencers’ crypto marketing.
Changes announced Monday in the official national journal will take full effect one month later. They want that influencers and sponsors to be kept informed of certain posts, that cryptographic risks be warned of, and that fines be imposed.
During an interview with the New York Times, the CNMV director Rodrigob Enaventura said that the watchdog is optimistic that these actions will organize crypto promotion through traditional media and influencers. He went on to add:
“If influencers aren’t covered, there’s a back door to circumvent regulation. This is new terrain for us, and there are moments of friction for them, but the rules of what wasn’t previously regulated. It always happens when you bring it in.”
New rules impose heavy fines on violations
Influencers must disclose if they’ll be paid to promote crypto or related services under the new Spanish guidelines. The posts should also include a disclaimer that the service may result in loss of all their invested assets.
Any influencer or media with more than 100,000 followers in Spain must tell the CNMV at least 10 days before the date about the crypto promotion’s content. Violations can result in fines of up to € 300,000.
The new crypto marketing laws in Spain apply to the crypto group, the PR firms they employ, along the influencers.
This comes amid many countries eyeing crypto marketing and the risks involved. The UK Treasury is also considering proposing a tighter set of crypto marketing regulations. According to the new rules in the nation, crypto advertisements must be approved in advance by a company that the Financial Conduct Authority has approved.