The Council of Ministers approved last Friday the regulations proposed by the CNMV (National Securities Market Commission) to regulate the advertising of crypto assets. Specifically, as reflected in the BOE in which said regulation has been published, the one made on cryptoactive presented as an investment object.
Thus, these regulations dictate that from the moment they come into force, which will be on February 17, the advertising of these assets must be “clear, balanced, impartial and not misleading”, in addition to being carried out in simple language and that is easily understood. In this way, the entity seeks to prevent advertising campaigns on cryptocurrencies that seek to attract the attention of small investors from being misleading and do not inform enough about these investments and the risks that they may entail.
Among other measures, this type of advertising will have to indicate which entity will be responsible for the custody of the announced crypto assets. Also the country in which the investment is made, as well as the legal framework that applies in each case. Apart from this, cryptocurrency advertising should clearly identify the crypto assets being advertised, to prevent the popularity of some, such as Bitcoin, from being used to gain investment in completely different ones.
On the other hand, the CNMV has also approved new regulations aimed specifically at influencers who are dedicated to advertising cryptocurrencies and other assets of the same type, as well as companies dedicated to it. All of them will have to notify the CNMV of carrying out a massive cryptoactive advertising campaign at least 10 days before they take place. All influencers with more than 100,000 followers will be required to do so or subscribers those who are paid to promote cryptocurrencies, a controversial practice in many countries, which, in addition to criticism, has led to various lawsuits.
As for companies that promote cryptocurrencies, they will have to communicate the content of their campaigns to the CNMV, in addition to including warnings about the risks of what they are going to promote. All this with the aim that the CNMV can control the market ecosystem created around crypto assets and eliminate ambiguity in their advertising, and also ensure that those who are the target of this advertising understand the risks of investing in them.
