BlocksInform
As part of the regulation that is due to come into force in mid-february, promoters of cryptoactive investments will be required to inform the spanish securities watchdog of the content of any ad that targets more than 100,000 people.
10-Day Advance Notice Rule
The Spanish government has instructed the country's securities watchdog to authorize advertisements which promote cryptocurrencies, a report said. Also, under the new measures, crypto-asset investment promoters will be required to notify the comision nacional del mercado de valores (cnmv) of any promotional campaign that targets more than 100,000 people some ten days before such a campaign commences.
According to a report, these regulations, which are set to become effective in mid-February, will enable the CNMV to monitor all types of crypto-related advertisements. The regulations will also allow the oversight body to include warnings about the risks associated with investing in specific crypto assets.
Meanwhile, the report states that influencers with more than 100,000 followers will also be required to inform the watchdog of any crypto investments they intend to promote. This special requirement further requires influencers to inform their supporters of the risks associated with the investments they promote.
NCVM is targeting influencers.
Explaining the government's decision to begin controlling influential individuals promoting crypto assets, the report quotes the CNMV's public reprimand of Spanish footballer Andres Iniesta in November. The reprimand followed an iniesta tweet which seemed to promote the binary cryptocurrency trading platform.
By scolding the footballer, the cnmv has declared iniesta necessary to collect enough information on cryptocurrencies before making an investment or to recommend to its 25 million followers on twitter and 38 million on instagram.
In the meantime, the CNMV’s decision to target influencers that are being paid to promote crypto-asset investments follows reports that U.S. reality television star, Kim Kardashian, and boxing legend Floyd Mayweather Jr., are being sued for their role in promoting Ethereummax and the EMAX cryptocurrency token.
In that trial, the plaintiff accuses both kardashian — who reportedly routinely gets paid for promotional posts — and mayweather of helping to create sufficient trading volumes allowing ethereummax token creators to dump emax tokens on unsuspecting investors.
How do you feel about the Spanish decision to regulate crypto advertising? Let us know how you feel about this in the comments section below.
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