Spain announce new role for crypto influencers
Spain took action on Monday to curb the excessive advertisements and set new rules for crypto assets, for example, social media influencers. The stock market supervisor approves massive campaigns and ensures that the investors know about any risks.
The explosive growth of cryptocurrency and other digital assets tied with traditional currencies has attracted global regulators’ attention. They are concerned that they may place the finance system in danger If they are not closely monitored.
The Spanish government announced a new rule that was publishing an official announcement that advertising and businesses that market crypto assets must inform the CNMV regulator at least ten days before the date about the content of any campaigns that target more than 100,000 individuals.
The new regulations will be in effect in the middle of February and permit the CNMV to monitor advertisements for all forms of crypto-assets closely and include warnings on the risks involved with these investments.
The same rules apply to crypto-influencers when they advertise their business and anyone who promotes on their own or for the benefit of third-party companies.
They include influencers who have greater than 100,000 customers, who pay to promote and promote cryptocurrency, according to the CNMV announced in a statement. It also said that they must notify the watchdog in advance of any promotions and inform of potential dangers.
In November, CNMV was scolded by soccer player Andres Iniesta for promoting Binance, a cryptocurrency-based exchange Binance via Instagram and Twitter. Twitter and Instagram accounts inform Iniesta that he must be informed about cryptocurrency before investing in them or recommending anyone else to invest in them.
Cryptocurrencies, such as Bitcoin, have experienced high prices and fluctuation, accompanied by a rise in aggressive marketing to draw investors.