Spain Sets New Rules for Influencers Promoting Cryptocurrency

Spain has just announced the new rules for influencers who are promoting cryptocurrency. Influencers and other advertisers with more than 100,000 followers in the country must notify the National Securities Market Commission (CNMV) at least 10 days before plugging crypto assets. They’ll face fines of up to €300,000 (around $342,000) for breaching the rules, which come into force on February 17th.

Spain Sets New Rules for Influencers Promoting Cryptocurrency

Influencers need to disclose if they receive payment for talking up cryptocurrencies. If that’s the case, they’ll need to provide clear and impartial warnings about the risks of crypto, including the fact that investments aren’t regulated. The rules also cover companies that promote crypto assets, as well as PR companies they hire.

See Also: Waqar Zaka Calls for Dharna at D-Chowk Following Govt’s ban on Cryptocurrency Trading

CNMV chief Rodrigo Buenaventura said,

“If influencers weren’t covered there would be a backdoor to avoid regulation. This is new terrain, for us and for them, and there will be moments of friction but that always happens when you bring in rules for something that wasn’t regulated before.”

It is for the first time a European Union country has announced such directives. EU members have yet to agree on how to regulate crypto across the bloc.

Some influencers who have plugged crypto-assets and related products have found themselves in hot water. In July, French authorities fined a reality TV star €20,000 ($22,800) for “misleading commercial practices” over a Bitcoin trading site ad on Snapchat. Kim Kardashian and Floyd Mayweather were this months named as defendants in a class-action lawsuit that accuses them of taking part in a “pump and dump” scheme.

Check Also: PTA to Block Cryptocurrency Portals to Avoid Potential Frauds

Source: Engadget

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Onsa Mustafa

Onsa is a Software Engineer and a tech blogger who focuses on providing the latest information regarding the innovations happening in the IT world. She likes reading, photography, travelling and exploring nature.

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