Spain has decided to take control of the promotion and advertising of cryptocurrencies circulating in the country to avoid any violation that can endanger the nation. The established rules concerns to how the influencer, sponsors and others promote cryptocurrencies.
The fast growth of cryptocurrencies has attracted the attention regulators around the world, who are concerned that they might endanger the financial system if they are not closely monitored.
Under the new guidelines, the influencers and other advertisers with more than 100,000 followers are instructed to notify the National Securities Market Commission (CNMV) at least 10 days earlier, before promoting any crypto assets. If they won’t abide by the rules effective from February 17th, they’ll have to face the fine of €300,000 (about $342,000).
“There would be a backdoor to avoid regulations if influencers were not covered. This is new territory for both us and them, and there will be tension, as there always is when you introduce rules to something that hasn’t been governed before.” CNMV chief, Rodrigo Buenaventura, told the Financial Times.
If influencers are paid to promote cryptocurrencies, they must disclose it. If that’s the case, they’ll need to offer clear and fair warnings about the risks of bitcoin, particularly the fact that investments are unregulated. The guidelines apply to both companies that promote crypto assets and the PR agencies they hire.
It’s apparently the first time such guidelines have been introduced in a European Union country. Members of the European Union have yet to agree on how to regulate cryptocurrency across the bloc. Meanwhile, as Buenaventura points out, member states are addressing some crypto-related issues, such as how they’re presented.
Some influencers have landed themselves into trouble for advertising crypto assets and related products. A TV celebrity was fined €20,000 ($22,800) by the French authority for misleading commercial practices in response to a Snapchat ad for a Bitcoin trading service. This month, a class-action complaint identified Kim Kardashian and Floyd Mayweather as defendants, accusing them of participating in a “pump and dump” scheme.
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