Spain wants to further regulate the promotion of cryptocurrencies, a growing trend among influencers, but which is not without risk.
Increasingly popular with the general public, cryptocurrencies are also a delight for influencers. On social networks, more and more content creators are now promoting non-fiat currencies, which have become a means of investment (almost) like any other. A situation that challenges some regulators, and in particular the Spanish National Securities Market Commission (CNMV).
As of next month, Spain has thus announced new measures intended to protect the most impressionable Internet users from the dangers of crypto investment. New rules which notably involve a stricter regulation of advertising by influencers. From now on, individuals and companies will have to notify the CNMV at least ten days before the launch of a promotional campaign praising cryptocurrencies. Note that this change will only apply to paid content creators who have more than 100,000 subscribers.
Include risk warnings
According to Reuters, Spanish influencers promoting cryptocurrencies will thus have to publish the content of their promotional campaign in advance, so that it can be validated by the CNMV. They will also have to include a banner with a risk warning related to financial investments and cryptocurrencies. A way for the Spanish authorities to control advertising related to non-fiduciary currencies on its territory, while ensuring that Internet users are informed of the risks incurred.
Avoid a remake of the EthereumMax fiasco
If the Spanish authorities are so careful about advertising related to cryptocurrencies, it is undoubtedly to prevent certain unscrupulous celebrities from flirting with the law by manipulating the stock market. As a reminder, a few months ago, Kim Kardashian and several American athletes praised the merits of EthereumMax, an obscure cryptocurrency with an uncertain price. After an aggressive advertising campaign, and the price soaring within days, the social media star finally liquidated his EMax shares, just before his rate crashed. An illegal practice called pump and dump, which initiated the launch of a class action in the United States.
