Spain’s securities market regulatory body, the National Securities Market Commission (CNMV), has announced that it is investigating a case involving a potential violation of regulations governing large-scale advertising campaigns for crypto assets. The investigation is focused on Spanish technology provider Miolos S.L. and its extensive crypto advertising campaigns conducted in September and November 2022.
The CNMV alleges that Miolos S.L. failed to include risk warnings or submit its advertising campaigns for authorization. According to Spanish laws, advertisers and companies marketing crypto assets are required to provide advance notice of the campaign content to the CNMV at least 10 days prior if the campaign targets over 100,000 people.
“This is the first sanctioning proceeding to be opened for non-compliance with the circular regulating the advertising of crypto assets,” said Rodrigo Buenaventura, chairman of the CNMV, during his speech at the annual Deloitte conference for the Spanish financial sector in Madrid last Wednesday.
Buenaventura emphasized that this investigation should serve as a reminder for companies to adhere to the new regulations surrounding crypto advertising. Compliance with the circular is crucial to ensure that risk warnings are included in advertising campaigns and that the CNMV has authorized them.
In addition to investigating Miolos S.L., the CNMV is also conducting a separate analysis of advertisements on the social media platform X (formerly known as Twitter) to identify possible infringements. Buenaventura highlighted the obligation of social media platforms to verify whether advertisers are included in an authorized list before allowing their ads.
“In recent days, we have detected advertisements on the social network X (formerly Twitter) promoted by an unauthorized entity,” Buenaventura explained. “These ads make illegal use of the image of some Spanish actors and the design and identity of a national media to try to obtain data and money from investors.”
Spain implemented measures in 2022 to regulate the advertising of crypto assets, with the CNMV being assigned the responsibility of approving mass campaigns and ensuring that investors are informed about associated risks. These regulations granted the CNMV the authority to closely oversee advertising for all types of crypto assets and incorporate risk warnings.
The regulations apply not only to crypto asset service providers advertising their activities, but also to individuals advertising on their own behalf or on behalf of third parties.
