It appears that the Spanish government has set up new rules regarding crypto-related promotions done by influencers, their sponsors, and others. In this new regulation, influencers and other similar advertisers must first inform the National Securities Market Commission (CNMV) at least ten days prior before promoting the digital asset. However, it’s worth noting that this only applies to those who have 100,000 followers or more.
If they breach these rules, the influencer in question could be charged up to €300,000 (around $342,000 when converted to USD). The Spanish government will officially put these new rules into effect on February 17, 2022. Not only that but influencers and advertisers must also divulge if they’re receiving payment for promoting the crypto asset.
If so, they must provide clear and unbiased warnings about the possible risks of cryptocurrencies, including the disclaimer that no regulation is done for crypto-related investments. This isn’t restricted to only influencers, though, as companies and PR companies that promote crypto must also abide by these new rules.
According to CNMV chief Rodrigo Buenaventura (via The Financial Times), not including influencers in the coverage could be “a backdoor to avoid regulation.”
It seems that this is the first time a European Union country has set up such rules. At this time, members of the EU are still trying to figure out how to regulate crypto. But for now, member states are trying to tackle crypto-related matters on their own, crypto promotions included.
These days, more and more influencers have promoted crypto assets and other similar products on their social media pages, and many of them found themselves in deep trouble. For instance, French authorities charged a hefty fine of €20,000 ($22,800) to a reality TV star for “misleading commercial practices” regarding a BTC trading site over Snapchat.
Even Kim Kardashian and Floyd Mayweather have found themselves in crypto-related legal trouble, as they were both accused of participating in a “pump and dump” strategy.