Spain leads the European approach to crypto advertising campaigns

Spain imposes restrictions on the promotion of cryptocurrencies by influencers because the European authorities have difficulty getting the unregulated sector under control.

In an obvious premiere for the EU, the national security market commission of Spain has received the authority to regulate crypto advertising.

The measures published on Monday in the state's official gazette will come into force in a month. They require influencers and their sponsors to inform the authorities in advance about some posts and to warn or expect the risks of crypto or to expect fines.

"We are very excited to see how this will bring a certain order to the promotion of crypto, not only through traditional media, but also through influencers," said Rodrigo Buenaventura, head of the watchdog, in an interview with the Financial Times.

"If influencers were not covered, there would be a back door to avoid regulation. This is new territory, for us and for you, and there will be moments of friction, but this always happens when you insert rules for something that was not previously regulated."

The new powers for the Spanish watchdog come after his collision in November on Twitter with the Spanish football legend Andrés Iniesta about his paid advertising for Binance, the world's largest cryptocurrency exchange when the Commission informed the world champion that it was his responsibility to provide risks about cryptos.

proposed EU-wide regulations for the sector have not yet been agreed and do not try to harmonize the rules for advertisers such as influencers.

As a result, Madrid and other European capitals try to at least regulate the promotion of crypto products. At the end of last year, France broadcast the task of examining online crypto advertising at the end of last year.

A French reality TV star was borne in July for "misleading business practices" with a fine of 20,000 euros after posting a complaint for a Bitcoin trade page on Snapchat.

"As Spain has now done, other countries are decided not only to wait a few years for the EU regulation to decide everything, but to take on areas such as public relations," said Buenaventura.

According to the new Spanish rules, influencers must disclose whether they are paid for the promotion of crypto, be it monetary or otherwise.

If this is the case, the supervisory authority will demand that its posts will have a clear “clear, balanced, impartial and non-misleading” statements about the risks of investments in crypto and a warning that crypto investments are not regulated, potentially unsuitable for small investors and could lead to the loss of the entire invested assets.

Influencer or outlets with more than 100,000 followers in Spain must inform the watchdog with a period of at least 10 days about the content of their crypto actions. Failure for non -compliance could be up to € 300,000.

The new Spanish advertising rules apply to crypto groups themselves and to PR companies they commissioned as well as for influencers.

An official of the European Commission said that Brussels had "no fundamental objections" against the Member States, which regulate before the entry into force of the EU cryptor regulation-called Mica-as long as the regulations at national and EU level are compatible. "Depending on the specific situation, the rules may have to be adjusted as soon as Mica comes into force," added the official.

The British Ministry of Finance checks a proposal for tightening the rules for crypto advertising. The new British regulations would probably require prior approval of crypto advertising through a company authorized by the Financial Conduct Authority, with possible fines for serious violations.