The National Securities Market Commission in Spain has announced new restrictions for crypto-based promotions.
While Spain has been quite liberal with its stance on cryptocurrency, the new circular will impose some restrictions on promoting digital assets. NSMC (or CNMV) is set out to tackle misleading advertisement campaigns that can potentially put investors at risk.
Based on the report, any advertising related to cryptocurrencies must have "clear, balanced, fair and non-misleading content and information on the risks in a prominent…" Likewise, the campaigns will be supervised by the NSMC if they are advertised to "100,000 people or more."
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The most notable regulatory measure is that crypto advertisement campaigns will be required to have an "easily understandable and visible" message issued by the NSMC which goes: "Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost."
Also, crypto advertisers will need to add links on their platforms that inform customers of the potential risks of investing in digital assets.
On the other hand, the NSMC will not issue any restrictions to digital assets or crypto-based companies. The main objective of these rules is to ensure the transparency and fluidity of the crypto market in the region.
The rules imposed by the National Securities Market Commission are set to be in motion on February the 17th, 2022.