More grim news for the crypto market on Monday, as Spain begins to regulate crypto asset rampant advertising of crypto assets, including by social media influencers, tasking its stock market supervisor with authorising mass campaigns and making sure investors are aware of risks.
Bitcoin is a phenomenon and particularly popular in Spain, where recovery from the stock market crash of 2008 has been slow. And Bitcoin and crypto investing has provided an alternative to investors, looking to make a quick return.
The drawbacks of Bitcoin are equally as spectacular, the Crypto market crashed last week and Bitcoin has lost half its value in 48 hours.
Spain to regulate crypto asset advertising
The rapid growth of cryptocurrencies has forced Spain to regulate crypto asset and it has drawn attention from regulators worldwide, who fear they could put the financial system at risk if not monitored.
The Spanish government said in its official bulletin advertisers and companies that market crypto assets will have to inform the National Securities Market Commission (CNMV) at least 10 days in advance about the content of campaigns targeting more than 100,000 people.
Influencers who promote crypto
The rules also apply to crypto asset service providers when advertising their activities and to any person advertising on their own or on behalf of third parties, which means social media influencers.
These include influencers with more than 100,000 subscribers who are paid to advertise and promote crypto assets, the CNMV said in a statement, adding that they will have to pre-notify the watchdog of promotional posts and warn of risks.
The new regulations will start from mid-February and allow the CNMV watchdog to specifically monitor advertising for all types of crypto-assets and to include warnings about risks involved in such investment.