The Spanish financial regulator, the Comisión Nacional del Mercado de Valores (CNMV), has established new rules and regulations regarding crypto-adverts, the law will take effect from February 2022.
Crypto advertisements must be “clear, balanced, and fair,” according to the new circular, which will take effect on February 17, 2022, while also providing relevant information on the dangers involved in investing in crypto.
Advertisers targeting 100,000 or more individuals must also notify the regulator 10 days ahead of time under the new guidelines. The CNMV will supervise the other ad operations after the initial report, but they will not require advanced reporting.
The CNMV also stated that the new advertising laws apply to influencers. The restrictions apply to cryptocurrency service providers who run advertisements on their own or through third-party ad providers such as crypto influencers.
Aside from these requirements, the CNMV also mandates that crypto advertisements include a snippet advising viewers that crypto investments are unregulated and that the entire investment may be lost. Finally, the ads must include links to additional information.
While the regulator is focusing on marketing, the new restrictions do not apply to the issuing of assets or other crypto-related activities.
Crack down on crypto advertisement
The Advertising Standards Authority, or ASA, in the United Kingdom is also cracking down on crypto marketing. Ads from crypto firms Coinbase, Kraken, eToro, and others were taken down by the advertising authorities last year due to ad violations. Crypto.com’s two mobile app adverts were recently prohibited by the ASA.
In the meantime, Singapore’s Monetary Authority has imposed crypto ad limits. Providers of digital payment tokens, or DPTs, are prohibited from advertising their products in public places such as public transit websites, social media, broadcast, and print media, according to the standards. DPT providers, on the other hand, can continue to advertise their products and services on their native websites and mobile apps.
