Spain will regulate influencers promoting cryptocurrency
Spain has announced new rules on how social media influencers and others can advertise cryptocurrency assets, Reuters reports. Starting next month, the Spanish National Securities Market Commission (CNMV) will require individuals and companies to notify it at least 10 days before launching campaigns for crypto assets. The rules apply to influencers with more than 100,000 followers who are paid to promote cryptocurrency — a practice that has drawn criticism and even lawsuits around the world.
According to Reuters, crypto advertisers will have to publish the content of their upcoming campaigns to the CNMV, and they must include warnings about the risks of what they are selling. The rules are designed to allow the CNMV to monitor the marketing ecosystem around crypto assets and ensure that the public is aware of the risks.
The CNMV has already used social media to throw cold water on the crypto hype. In November he replied to a tweet football player Andrés Iniesta after he enthusiastically promoted cryptocurrency exchange Binance, warning that “cryptoassets, being unregulated products, carry significant risks”. (It was unclear whether Iniesta had been paid for his promotion.)
Cryptocurrency and social media advertising are two areas with significant regulatory ambiguity, and the combination has sometimes proven troublesome. Earlier this month, a targeted class action proposal Kim Kardashian, boxer Floyd Mayweather and others for promoting the EthereumMax currency – dramatically boosting its price before the asset collapsed nearly worthless. CNMV’s new rules won’t prevent influencers from telling their followers about cryptocurrency, but they will allow the agency to more closely monitor what exactly is being offered.