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Spanish Watchdog Kicks Off First Case on Crypto Advertising Violations

 |  November 8, 2023

Spain’s stock market supervisor, the CNMV, announced on Wednesday that it has launched its first-ever case related to potential violations of the recently established regulations overseeing mass advertising campaigns for cryptoassets. The move comes as part of Madrid’s efforts to bring order to the booming crypto advertising industry.

As of January 2022, Spain introduced stringent regulations aimed at curtailing the unrestrained promotion of cryptoassets. The new rules mandated that the CNMV, the country’s financial watchdog, must approve mass advertising campaigns while ensuring that investors are fully informed about the potential risks associated with cryptocurrency investments, as reported by Reuters.

In a parallel announcement, the CNMV disclosed that it is currently scrutinizing advertisements disseminated on the social media platform X, previously known as Twitter. This platform recently went private under the stewardship of tech magnate Elon Musk. The examination seeks to identify any potential infringements in line with the recently imposed advertising guidelines.

Related: Spain Aims To Set Up AI Regulations During Its EU Rotating Presidency

The CNMV’s actions indicate a commitment to enforcing the cryptocurrency advertising regulations, which have become increasingly vital in protecting investors from misleading or deceptive promotions in the rapidly growing crypto market.

The CNMV revealed that it has officially initiated disciplinary proceedings against Spanish technology provider Miolos S.L. regarding two mass advertising campaigns promoting cryptoassets. It is important to note that this step does not preclude the final outcome of the investigation, and further details about the alleged violations are yet to be released.

Source: Reuters