The Spanish National Securities Market Commission (CMNV), has issued an order asking domestic crypto companies to provide details 15 days prior to the launch of advertising campaigns that target over 100,000 people. Finanzas claims that the draft released by the watchdog gives enough time for the company to assess if the ads meet the requirements and give the green light.
The order also states that the ruling applies to all ads on television, radio and newspapers as well as online. This includes influencers who promote crypto-related products and services. According to the CMNV, the requirements for ads include transparency, fairness, impartiality, and “not misleading”.
The Spanish watchdog had warned crypto companies that they could face fines of up to $353,000 if they didn’t get permission from authorities to run the ads.
After the huge ads that Bit2Me had run, the proposal to regulate the ads and have them go through an approval process within a 15-day period was made. In response to the massive Bit2Me ads, they ran a huge campaign in Madrid that promoted Bitcoin (BTC). It was actually a warning sign for the watchdog that this type of advertising promoted investment products that could lose money.
Include Disclaimers in Ads
The CMNV requested that crypto companies include a disclaimer in their advertising campaigns. It stated that crypto assets were not regulated and could not be suitable for retail investors. There are also risks of losing all of the investment.
The Spanish Congress of Deputies voted in favor of a bill that requires Spanish citizens to file tax returns detailing their foreign cryptocurrency holdings. This is in keeping with current crypto market conditions.