According to Reuters, Spain has established new restrictions for how social media influencers and others can promote digital assets. The Spanish National Securities Market Commission (CNMV) will compel people and businesses to notify it at least 10 days before undertaking crypto asset campaigns starting next month. The prohibitions apply to influencers with more than 100,000 followers who are paid to promote cryptocurrencies, a practice that has sparked outrage and even legal action around the world.
Reuters reports that crypto advertisers will have to submit the substance of their prospective campaigns to the CNMV, along with warnings about the risks of what they’re offering. The guidelines are intended to allow the CNMV to oversee the crypto asset marketing ecosystem and ensure that audiences are informed of the risks.
The CNMV has previously utilized social media to stoke anti-crypto sentiment. It responded to a tweet from professional soccer player Andrés Iniesta in November, advising him that “cryptoassets, being unregulated products, present some major dangers,” after he enthusiastically praised the cryptocurrency exchange Binance. (It’s unknown if Iniesta was compensated for his promotion.)
Both cryptocurrency and social media advertising are subject to severe regulatory uncertainty, and the two have occasionally clashed. A potential class action lawsuit was filed earlier this month against Kim Kardashian, boxer Floyd Mayweather, and others for promoting the cryptocurrency EthereumMax, which skyrocketed in value before collapsing into near-illiquidity. The CNMV’s new guidelines won’t stop influencers from talking about cryptocurrency with their followers, but they will allow the agency to keep a closer eye on what’s being provided.