Spanish Stock Exchange Supervisor Opens First Case Related To Violation Of Crypto Advertising Rules

Rodrigo Buenaventura, head of the Spanish stock exchange watchdog. (photo: Twitter @ChavesVeezquez)

JAKARTA - Spanish stock exchange watchdog announced on Wednesday 8 November that it had opened the first case of a new rule violation related to a mass advertising campaign for cryptooset. They also revealed that they were analyzing ads broadcast on social media platform X, for potential breaches.

X did not immediately respond to a request for comment on the report.

In early 2022, Madrid took steps to regulate excessive advertising related to cryptooset, by tasking CNMV watchdogs with granting mass campaign permits and ensuring that investors are aware of the risks.

CNMV announced on Wednesday that it had started a disciplinary process against Spanish technology provider Miolos SL, regarding two mass campaigns advertising cryptoaset. They stated that this step did not decide the final results of the investigation.

Miolos did not immediately respond to requests for comment via email regarding CNMV actions.

"This is the first sanctions process opened due to non-compliance with the rules governing cryptoosetic advertising," Rodrigo Buenaventura, chief supervisor, said at a financial event on Wednesday.

Buenaventura said that this should be a reminder of the need to respect the rules set out in the new regulation.

With the rapid growth of cryptocurrencies and digital assets linked to traditional currencies, it has attracted the attention of regulators around the world, who fear this could threaten financial system stability.

The watchdog said it was investigating four possible serious violations related to the inclusion of information and warnings about the risks of advertised cryptoatets as well as the non-resignal of prior notifications.

Buenaventura said that CNMV is very active in fighting financial fraud involving cryptoaset.

"In recent days, we have detected ads on social network X (previously Twitter) promoted by unauthorized entities," he said. He added that social media platforms are required to check whether advertisers are on the authorized list.

Advertisers and companies marketing cryptoatets are required to notify CNMV at least 10 days earlier about campaign content targeted at more than 100,000 people.

The new rules came into effect mid-February last year and allowed CNMV to specifically monitor ads for all types of cryptoatets and include warnings about risks.

Spanish rules also apply to cryptooset service providers when they advertise their activities and to each individual advertising on their own or third-party names.