SPAIN is clamping down on the advertising of unregulated cryptocurrency investments.
Concerns about investors being ripped-off by bogus claims have prompted a new rule that obliges all crypto advertisements in the country to carry a warning from February 17.
The CNMV, the government agency that regulates securities markets in Spain says that the following disclaimer has to be published in adverts: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”
Adverts will also have to be ‘clear, fair, and balanced and non-misleading’ according to the CNMV.
The measure is part of a package designed to regulate the sector in Spain and is seen as ground-breaking in Europe.
The rules require digital asset service providers, including social media influencers who are paid to promote crypto, to notify the CNMV about advertising content and to issue the disclaimer about the risks of investing.
Crypto service providers looking to reach 100,000 or more people will have to submit details of adverts at least ten days ahead of publication for approval.
Two popular crypto exchanges, Houbi and Bybit, had warnings issued about them last summer because they were operating without a licence.
The CNMV even took to Twitter in November to rebuke Spanish footballer, Andres Iniesta, who used the social media platform to say he used the exchange firm, Binance.