Spain will impose restrictions on cryptocurrency promotions.
According to the Financial Times (FT), Spain is imposing restrictions on such influencers’ promotion of cryptocurrencies, an apparent first for the European Union (EU). The National Securities Market Commission (CNMV), the country’s market regulator, now has the authority to regulate cryptocurrency advertisements.
Influencers and their sponsors will be required to notify authorities in advance of posts promoting cryptocurrency beginning in a month. According to the Financial Times, they will also have to warn of the risks. Fines will be imposed if this is not done.
The fact that influencers are exempt from the same regulations as traditional media led Rodrigo Buenaventura, the head of CNMV, to refer to them as “a backdoor to circumvent regulation.”
One of the triggers for the new requirements was World Cup-winning soccer star Andrés Iniesta’s promotion of crypto exchange Binance in November.