Spanish regulator Comisión Nacional del Mercado de Valores (CNMV) has reportedly disclosed details regarding the new law applicable to the advertising of investments in cryptocurrency assets.
Specifically, cryptocurrency advertising must be "clear, balanced and fair," as revealed in a new notice that will come into effect on February 17 of this year, while also providing sufficient data on the possible risks associated with making cryptocurrency investments.
The new regulations further require advertisers targeting 100,000 people or more to notify regulators 10 days prior to placement.
After the initial report, oversight of the remaining advertising campaigns will reportedly be the responsibility of CNMV, but advance reporting will not be mandatory.
CNMV also made it clear that Netflix falls under the scope of the newly introduced advertising regulations. These rules will apply to cryptocurrency service providers who run promotions on their own, or through third-party advertising providers such as cryptocurrency influencers.
In addition to the above, the CNMV has mandated that cryptocurrency advertisements be accompanied by a segment telling viewers that there are no proper regulations for cryptocurrency investments, as well as a warning that the total amount of money claimed to be invested may be lost.
Finally, the ads are reportedly required to disclose links to additional information about the matter.
While advertising is reportedly a major area of concern for regulators, the new rules do not cover asset issuance and different cryptocurrency-related services.
The UK Advertising Standards Authority (ASA) is also reportedly exercising stricter controls on cryptocurrency advertising. In 2021, the advertising regulator cancelled ads created by cryptocurrency companies Coinbase, Kraken, eToro and others for violating advertising, and most recently banned two mobile app ads for Crypto.com twice.