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Thursday, March 23, 2023

Spain Announces Regulations for Influencers Promoting Cryptocurrency

According to Reuters, Spain has established new restrictions for how social media influencers and others can promote digital assets. The Spanish National Securities Market Commission (CNMV) will compel persons and businesses to inform it at least 10 days before undertaking crypto asset campaigns starting next month. The prohibitions apply to influencers with more than 100,000 followers who are paid to promote cryptocurrencies, a practice that has sparked outrage and even legal action throughout the world.

Reuters reports that crypto advertisers will have to submit the substance of their prospective advertisements to the CNMV, along with warnings about the hazards of what they’re offering. The guidelines are intended to allow the CNMV to oversee the crypto asset marketing ecosystem and ensure that audiences are informed of the dangers.

The CNMV has previously utilized social media to stoke anti-crypto sentiment. It responded to a tweet from professional soccer player AndrĂ©s Iniesta in November, advising him that “cryptoassets, being unregulated products, present some major dangers,” after he enthusiastically praised the cryptocurrency exchange Binance. (It’s unknown if Iniesta was compensated for his promotion.)

Both cryptocurrency and social media advertising are subject to severe regulatory uncertainty, and the two have occasionally clashed. A potential class action lawsuit was filed earlier this month against Kim Kardashian, boxer Floyd Mayweather, and others for promoting the cryptocurrency EthereumMax, which skyrocketed in value before collapsing into near-illiquidity. The CNMV’s new guidelines won’t ban influencers from talking about cryptocurrencies with their followers, but they will allow the agency to keep a closer eye on what’s being provided.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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