8-11-2023 (MADRID) Spain’s stock market regulator has initiated its first case related to a potential violation of recent regulations governing large-scale advertising campaigns for cryptoassets.
In early 2022, Madrid took measures to oversee and control the extensive advertising of cryptoassets, tasking the CNMV stock market regulator with authorizing mass campaigns and ensuring investors are adequately informed about the associated risks.
On Wednesday, the CNMV announced that it had launched disciplinary proceedings against Spanish technology provider Miolos S.L. concerning two mass advertising campaigns promoting cryptoassets. The regulator clarified that this action does not pre-judge the final outcome of the investigation, and it remains an ongoing process.
Miolos has not responded immediately to a request for comment regarding the CNMV’s actions.
Rodrigo Buenaventura, the head of the CNMV, revealed during a financial event on Wednesday that this is the first instance of a disciplinary procedure being initiated for non-compliance with the circular that governs the advertising of cryptoassets. He emphasized that this case should serve as a reminder of the necessity to adhere to the regulations established in the new framework.
The exponential growth of cryptocurrencies and digital assets tied to conventional currencies has attracted the attention of regulators worldwide, who have expressed concerns about the potential risks they pose to the financial system.
The CNMV is currently investigating four potential significant violations, primarily related to the failure to include adequate information and warnings regarding the risks associated with the advertised cryptoassets and the lack of prior notification.
According to the new regulations, advertisers and companies promoting cryptoassets must inform the CNMV at least 10 days in advance of launching campaigns targeting more than 100,000 individuals. These regulations, which came into effect in mid-February the previous year, grant the CNMV the authority to closely monitor advertising for all types of cryptoassets and require the inclusion of risk warnings.
Spain’s regulations extend to cryptoasset service providers advertising their services, as well as individuals advertising on their own behalf or on behalf of third parties.
