Spain Hall Establishment Influential, rules related to how their sponsors and others promote Cryptocurrency. Influential and other advertisers with more than 100,000 followers in the country must notify the National Securities Market Commission (CNMV) at least 10 days prior to plugging in crypto assets. They will have to pay a fine of up to € 300,000 (approximately $ 342,000) for violating the rules, effective February 17.
Influential people have to disclose if they accept money to talk about cryptocurrency. If so, they need to provide clear and unbiased warnings about cryptocurrency risk, in which investments are not regulated. The rules also cover companies that promote crypto assets, as well as the companies they hire.
“If the influencers are not covered, there will be a back door to avoid control,” said CNMV chief Rodrigo Buenaventura. Financial times. “It’s a new territory for us and for them, and there will be moments of friction, but it always happens when you bring rules for something that has not been regulated before.”
This is believed to be the first time an EU country has come up with such a directive. EU members have yet to agree on controlling crypto across the bloc. Meanwhile, Buenaventura notes that member states are dealing with some crypto-related issues, including how they are advertised.
Some influential people who have plugged in crypto resources and related products have found themselves in hot water. In July, French authorities fined a reality TV star € 20,000 ($ 22,800) for “misleading commercial practice” for advertising on the Bitcoin trading site on Snapchat. Kim Kardashian and Floyd Mayweather were there this month Has been named as the accused In a class-action lawsuit alleging their involvement in a “pump and dump” scheme.
All products offered by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we can earn an affiliate commission.