Spain has set new rules for promoting cryptocurrencies online to popular bloggers, media personalities and other opinion leaders. Starting next month, the National Commission for the Spanish Securities Market (CNMV) will require that it be notified at least 10 days before launching a campaign to promote crypto assets. The rules apply to social media users who have over 100,000 followers and are paid to promote cryptocurrencies.
According to Reuters, advertisers who intend to launch a cryptocurrency-related campaign must provide the content of the upcoming CNMV ad. In addition, any advertising message aimed at promoting digital money must contain an indication of the potential risks associated with cryptocurrencies. The rules are designed to allow CNMV to control how cryptocurrencies are promoted and ensure consumers are aware of the risks involved.
CNMV was previously involved in social media activities aimed at raising user awareness of digital money. Last November, the agency responded to a tweet from professional footballer Andrés Iniesta, in which he enthusiastically promoted the Binance cryptocurrency exchange. CNMV commented on the post by posting a warning below it “As unregulated products, cryptoassets pose significant risks”.
Cryptocurrencies and social media advertising are difficult areas to regulate, and the combination sometimes creates problems. Earlier this month, discussions began about a class action lawsuit against Kim Kardashian, boxer Floyd Mayweather and other influencers for promoting the cryptocurrency EthereumMax. The support of famous people caused the currency to appreciate sharply, after which it depreciated. The new CNMV rules won’t stop influencers from telling their followers about cryptocurrencies, but they will allow the regulator to take a closer look at what exactly is being offered to consumers.