It has tasked the stock market supervisor with authorising mass campaigns and ensuring investors are aware of risks associated with crypto assets as part of a move to regulate rampant advertising of crypto assets, including by social media influencers.
A rapid rise in cryptocurrencies and digital assets pegged to traditional currencies has attracted the attention of regulators around the world, who are concerned that if they are not monitored, they could undermine the whole financial system.
Advertisers and companies that market crypto goods have to notify the CNMV watchdog of their content 10 days before launching campaigns which target 100,000 people or more, according to the Spanish government’s official bulletin.
With the new regulations, CNMV will monitor all types of crypto assets advertising specifically, and include warnings about the risks involved in investing in crypto assets.
Similarly, crypto-asset service providers must follow the rules when advertising their services, as well as anyone announcing their services on their own or on behalf of third parties.
CNMV said they plan to pre-notify the watchdog of promotional posts and warn it about any risks associated with crypto assets promoted by influencers with more than 100,000 subscribers.
In November the news outlet CNMV criticized soccer star Andres Iniesta on Twitter and Instagram for promoting a cryptocurrency exchange platform called Binance and telling him he should research cryptocurrencies thoroughly before investing in them or recommending others to do so.
There has been a significant increase in aggressive advertising targeting investors who are looking to invest in cryptocurrencies such as bitcoin.