Spain is enacting regulations governing how influencers, sponsors, and others promote cryptocurrency. Before boosting crypto assets, influencers and other advertising in the nation with more than 100,000 followers must inform the National Securities Market Commission (CNMV). This has to be done at least 10 days in advance. They might face fines of up to €300,000 (about $342,000). This will be done if they don’t follow the restrictions, which take effect on February 17th.
Cryptocurrency Influencers must disclose whether they are compensated for promotion
If that’s the case, they’ll have to issue clear and unbiased warnings about the dangers of cryptocurrency, including the fact that investments are unregulated. Companies that promote crypto assets, as well as the PR firms they engage, are covered by the guidelines.
“There would be a backdoor to circumvent regulation if influencers were not covered. The author “Rodrigo Buenaventura, the CNMV’s president, told the Financial Times. “This is new territory for both us and them, and there will be friction, as there always is when you introduce regulations to something that hasn’t been controlled before.”
New guidelines to be paid full focus on
It’s thought to be the first time such guidelines have been introduced in a European Union country. Members of the European Union have yet to agree on how to regulate cryptocurrency throughout the union. Meanwhile, as Buenaventura points out, member nations are addressing certain crypto-related issues, such as how they’re presented. Some influencers have gotten themselves into trouble after promoting crypto assets and associated items.