Spain’s National Securities Market Commission (CMNV) has issued an order that asks domestic crypto companies who wish to deploy advertising campaigns targeting over 100,000 people to submit details 15 days before the launch. According to Finanzas, the draft published by the watchdog allows enough time to evaluate if the ads comply with the established requirements and decide on giving the green light or not.
Also, the order states the ruling covers all advertisements run via television, radio, newspapers, online and social media including influencers who promote any crypto-related products or services. The requirements include that the ads should be transparent, well balanced, impartial and “not misleading,” the CMNV said.
Previously, the Spanish watchdog warned all crypto companies that if they do not obtain permission from the authorities to run these ads, it could lead to fines up to $353,000.
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The proposal of regulating the ads and passing them through an approval process on a 15-day period came in the wake of the massive ads deployed by Bit2Me. They ran a massive campaign in the streets of Madrid promoting Bitcoin (BTC) with catchphrases like “The revolution has just begun. Welcome to Bitcoin.” In fact, it raised alarms at the watchdog, who later reinforced the rules on cryptos and warned consumers that these kinds of ads promote investment products that carry high risks of losing money.
Including Disclaimers in the Ads
That is why the CMNV asked crypto companies to include a disclaimer in the advertising campaigns, telling people that crypto assets “are not regulated and cannot be suitable for retail investors, facing risks of losing the total amount of the investment.”
At the end of May, the Spanish Congress of Deputies has voted in favor of a law that requires Spaniards to report their overseas cryptocurrency holdings through tax filings, arguing that the new ruling goes in line with the current circumstances surrounding the crypto markets.