Cryptocurrency regulations for influencers in Spain are revealed. The Spanish government has announced new regulations for how social media influencers and other personalities may promote cryptocurrency assets, according to Reuters. Starting next month, the Spanish National Securities Market Commission (CNMV) will require people and businesses to notify it at least 10 days before advertising cryptocurrencies. The regulations apply to paid influencers with more than 100,000 followers who are instructed to promote cryptocurrency; this practice has drawn criticism and even lawsuits worldwide.
New cryptocurrency regulations in Spain for influencers revealed
According to Reuters, crypto marketers will be required to release their future material to the CNMV, as well as include warnings about the products they’re selling. The regulations are meant to enable the CNMV to oversee the marketing ecosystem surrounding cryptocurrency assets and ensure that consumers are aware of potential hazards.
The CNMV has previously attempted to dampen enthusiasm for cryptocurrency by using social media. After professional soccer player Andrés Iniesta enthusiastically praised Binance in a tweet, the regulator responded with: “Cryptoassets, as unregulated products, come with considerable risks.” (It was unclear whether Iniesta had been compensated for his endorsement.)
Estoy aprendiendo cómo empezar con las criptomonedas con @BinanceES #BinanceForAll
I’m learning how to get started with crypto with @binance #BinanceForAll pic.twitter.com/3Km58KrnPG
— Andrés Iniesta (@andresiniesta8) November 24, 2021
The line between cryptocurrency and social media advertising is fuzzy, and the mix has sometimes caused problems. A class-action lawsuit was filed against Kim Kardashian, boxer Floyd Mayweather, and others this month for promoting EthereumMax — a cryptocurrency that previously rose in price dramatically before plummeting into near worthlessness. The CNMV’s new regulations won’t prevent influencers from promoting cryptocurrency, but they will enable the agency to keep a closer eye on what’s being advertised.