Baisakhi MishraSpain is the latest country to enact harsh crypto advertising regulations, including stiff penalties for influencers who fail to comply. Basically, Influencers promoting cryptocurrency in Spain will be regulated. Spanish National Securities Market Commission (CNMV) is developing guidelines for how influencers, cryptocurrency startups, and marketing firms promote digital currencies.
Influencers promoting cryptocurrency in Spain will be regulated
Image Source: Mint
According to the new guidelines, any influencer or organization in Spain with more than 100,000 followers must notify the authorities at least ten days before launching an ad campaign.
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— Floki Inu (@RealFlokiInu) October 6, 2021
From February 17, when the guidelines take effect, failure to comply could cost influencers up to €300,000 (£251,058). We’re quite thrilled about how this will help to bring some structure to how cryptocurrency is pushed, not just through traditional media but also influencers,’ said the team. The CNMV’s president, Rodrigo Buenaventura, told the Financial Times in an interview.
‘There would be a backdoor to escape regulation if influencers were not included,’ added Buenaventura. ‘This is uncharted territory for both us and them, and there will be friction, as there always is when you introduce laws to something that hasn’t been governed before,’ says the author.
Influencers will now be required to reveal whether they are paid to promote cryptocurrency. Influencers must also include ‘clear, fair, unbiased, and non-misleading remarks on the hazards of cryptocurrency, such as the fact that investments are unregulated, according to Spain’s new laws.
Following Spanish footballer Andres Iniesta’s sponsored Binance marketing on his Twitter and Instagram accounts, Spain is enacting the restrictions. Iniesta was allowed off with a warning that he should learn everything he can about cryptocurrency before investing or advising others to do so.
The laws apply not only to influencers but also to companies that promote crypto assets and the PR firms they hire. While EU nations have yet to agree on how to govern crypto across the bloc, this is likely the first time a European Union country has introduced such directives.
The UK government stated this week that legislation to combat deceptive crypto-asset marketing is in the works. The Advertising Standards Authority in the United Kingdom has taken action against crypto advertisements made by companies ranging from Crypto.com and Coinbase to Papa Johns and Arsenal Football Club.
Tfl was urged to prohibit ‘unethical’ cryptocurrency advertisements on the tube in November of last year.
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