The Spanish financial regulator National Securities Market Commission, or CNMV, announced new regulations for advertising investments in crypto assets. According to the new circular, which will come into force on February 17, 2022, cryptocurrency announcements must be “clear, balanced and fair”, in addition to providing sufficient information about the risks involved in investing in cryptocurrencies.
The new rules also require that advertisers targeting 100,000 people or more notify the regulator ten days in advance. After the initial report, the rest of the advertising activities will be supervised by the CNMV, but will not require prior notice.
The CNMV also made it clear that influencers are covered by the new advertising regulations. The regulation applies to cryptocurrency service providers that serve ads themselves or through third-party advertising providers, such as influencers promoting cryptocurrency projects.
In addition to these rules, The CNMV also requires that cryptocurrency advertisements include an excerpt informing that investments in cryptocurrencies are not regulated and warning that the entire amount invested may be lost. Finally, the ads they should also provide links to more information.
Although the regulator focuses on advertisements, the issuance of assets and other cryptocurrency-related services are not covered by the new rules.
The UK Advertising Standards Authority, or ASA, is also cracking down on crypto ads. Last year, the advertising regulator pulled ads from crypto firms Coinbase, Kraken, and eToro, among others, for advertising violations. Most recently, the ASA banned two Crypto.com mobile app ads.
Meanwhile, the Monetary Authority of Singapore also issued restrictions on cryptocurrency advertisements. The guidelines prohibit providers of digital payment tokens, or DPTs, from promoting their products in public spaces such as websites, public transportation, social media, broadcast and print media. However, DPT providers may continue to advertise their products and services on their own websites and mobile applications.
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