The advertising of crypto assets must include the warning that investment in them “is not regulated, may not be suitable for retail investors and lose the entire amount invested”. This has been decided by the National Securities Market Commission (CNMV), which has determined that said message must have a format and position that guarantees its relevance (it may not be presented as “secondary information or in footnotes” In addition, advertising must include a link or an indication (such as “click on the image” or “consult this address for more information”, or a QR code or similar formulas) of how to access additional information explaining “in detail” the risks that this investment entails.
This is one of the main novelties of the circular (norm, in its jargon) that the supervisory body has just approved, the first in Europe on advertising crypto assets. After its publication in the Official State Gazette (BOE) this Monday, it will enter into force within a month (on February 17). Its main objective is that the advertising of these products “offers truthful, understandable and non-misleading content, and that visibly includes the risks associated with them”.
To do this, those interested in advertising investment in crypto assets must previously communicate their campaigns to the CNMV when they are aimed at a mass audience (more than 100,000 people). Both these initiatives and those of a smaller scale will be subject to the supervision of the body chaired by Rodrigo Buenaventura, which in case of breaches of the rule may demand the cessation or rectification of advertising and also impose sanctions for serious infractions. obligations as well include the ‘influencers‘ as long as it is sponsored content for financial consideration of any kind (not if they do it on their own initiative), according to sources from the supervisor.
Law in process
Waiting for the processing of a European directive to be completed, which will then have to be transposed into Spanish law, there is currently no law that regulates the investment of crypto assets, a booming phenomenon in recent years. However, the Government enabled the CNMV in March last year to control its advertising. After almost a year of processing and once all the phases have been completed (hearing and public consultation and report from the Council of State, among others), the body has finally approved its pioneer standard.
The new circular will be applicable to service providers on crypto assets when they carry out these advertising activities, to advertising service providers, or to any other natural or legal person who carries out said activity on their own initiative or on behalf of third parties. This includes natural persons who, for remuneration, advertise and promote crypto assets (products or services promoted through the aforementioned ‘influencers’). If a crypto asset company itself is advertised, as is the case with many sporting events, but not the investment in them, the requirements of the standard will not be mandatory.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.