Spain decided to crack down on January 17 against influencers and advertisers promoting cryptocurrencies. The country wants the followers of the biggest influencers to be properly informed of the risks of cryptocurrencies for their economies. He is not the only one.
Advertising for cryptocurrencies is regulated
In parallel with high volatility in the prices of cryptoassets, aggressive advertisements to attract new investors have multiplied. Andres Iniesta, was picked up by stock market supervisor, the National Securities Market Commission (CNMV), for promoting Binance on Twitter and Instagram recalls Reuters.
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Faced with the risk for the purses of the most impressionable amateur investors, Spain has taken matters into its own hands. Businesses and influencers with more than 100,000 followers will need to notify CNMV ten days before an ad airs for clearance.
They will have to indicate if they have been paid to promote a cryptocurrency service. Clear and unbiased warnings should appear. The measure will come into force in mid-February.
Singapore and France are also looking into the problem
In parallel, on the same day, a similar measure was taken on the other side of the planet by Singapore. Yet perceived as a paradise for the exchange of cryptocurrency, the city-state is also worried about the general public tempted to immerse themselves in this unstable and poorly regulated market. The Monetary Authority off Singapore has restricted the advertising of these products on the companies’ own platforms and otherwise banned.
In France, the first conviction for “deceptive commercial practices” in connection with cryptocurrencies, was imposed on Nabilla in July. The influencer was fined 20,000 euros for a hidden advertisement on a bitcoin exchange site on Snapchat in 2018.
When will there be European regulations?
This is the only case currently recorded in France. The world reports, however, that several reality TV stars are under investigation by the Financial Markets Authority (AMF) and the Directorate General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF). Several of them have had their Instagram accounts deleted for promoting trading platforms.
There are no regulations or directives at European level to regulate the promotion and market of cryptocurrencies. Sweden has expressed the wish to ban cryptocurrencies that consume too much energy, without meeting specific echoes on the continent. Draft regulations are multiplying throughout the world and the dynamism of the sector’s advertising market could encourage European legislators to take action quickly.