New regulations are being laid down by the Comision Nacional del Mercado de Valores, (CNMV) the Spanish financial regulator, for crypto-asset investments advertising. The new regulation is expected to take effect from February 17, 2022 and has mentioned that the crypto ads should be clear , fair and balanced and should provide sufficient information about the risk that is involved in investing in crypto.
As per the new rules, the advertisers, who are targeting more than 100,000 people or more have to inform the regulator at least ten days in advance. The remaining activities will be conducted under the supervision of CNMV, after the initial report has been submitted and no advance reporting will be required. The CNMV has made it clear that the new advertising regulations would have to be followed by the influencers. The rules would be applied to the crypto service providers who run ads on their own or through third party ad providers including the crypto influencers.
Apart from the new rules, the CNMV has said that the crypto ads will have to include a small information that will inform the audience that the crypto investments are not regulated. The rules has also mentioned that the investors should also be aware that even the full amount that is invested could be lost. It has also been mentioned that the ads should also contain links that provide more information, on the other hand, even the Advertising Standards Authority of the United Kingdom is also targeting the crypto ads.
The agency had last year taken down the ads made by the firms like Kraken, Coinbase, eToro and others. The ASA had also banned two mobile app ads by Crypto.com. Even the Monetary Authority of Singapore has laid down restrictions on crypto ad. It has prohibited digital payment token and the providers from advertising the products at public spaces like social media, print media public websites and more.
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