Starting Thursday, February 17, influencers or companies wishing to launch an advertising campaign for Bitcoin (BTC) or other cryptocurrencies or non-fungible tokens (NFTs) in Spain must submit an application to the National Securities Market Commission (NFT). On a mandatory basis ( CNMV).
This measure is part of the new regulation governing the advertising of Bitcoin and other cryptocurrencies in Spain, and now requires interested parties to complete a form to consent to an advertising campaign.
The questionnaire published on the official website of the CNMV subject applicants to a Comprehensive examination covering approximately 58 questions. These range from data identifying the person or company that will launch the campaign, to the profitability reports promised in each ad.
Only those responsible for launching massive Bitcoin campaigns with the potential to reach 100,000 views need to fill out the form and submit it to the CNMV 10 days in advance. However, it is considered that The regulator may request changes to the proposal For non-compliance with the regulations or, in any case, reject the application if it is not considered appropriate.
In fact, applicants will have two days, before the launch date, to modify their cryptocurrency promotional or advertising campaigns, aiming to adapt to the requirements. They can also make arguments in defense of their rejected proposals, when they consider them to be so.
Spanish lawyer Enrique Nieto Brackelmans notes that the primary tool of the new standard seeks to achieve the goal that advertising for cryptocurrencies published in Spain is “clear, balanced, impartial and not misleading.”
In this sense, The standard requires advertising content to avoid omissions and ambiguity Which may lead to confusion, so ask for cues about expected or past profitability, as well as include warnings about ‘investment risks’.
Indicate whether the ad will provide a quantitative reference to past returns or ratings. And if the time period to which you are referring is expressly indicated, and it is clearly noted that past returns are not a reliable indicator of future returns.
Pre-contact document for massive advertising campaign for crypto assets.
Each of the questions included in the question form, Complies with the measures to regulate the advertising of cryptocurrencies published by the regulatoras reported by CriptoNoticias last January.
Enrique Nieto adds that the CNMV will now be able to keep records of all advertising campaigns carried out for a period of two years. With this, you will have evidence of the public data for each and keep each ad piece published, as well as copies of contracts with advertising service providers.
The term ‘gift’ in Bitcoin advertising in Spain
The authorization request form to launch campaigns with Bitcoin and other cryptocurrencies asks for this Influencers or companies indicate whether their ads will include phrases such as “gift”, gifts or the like. This is because the regulations prohibit the use of these words that attract a lot of attention from the public and have been used before to deceive others.
Similarly, the questionnaire asks for the cases in which Users do not own the private keys of the cryptocurrency which belong to you when in the custody of a third party. It will also be necessary to provide the definition of the entity that will take care of the crypto assets to users, when this is the case.
The document asks for an indication of whether two or more different currencies will be offered simultaneously in each advertising campaign, or if profitability is included for periods longer than twelve months.
For Enrique Nieto, the standard makes an important contribution, though Focuses exclusively on advertising activity and not properly in issuing cryptocurrencies or providing services related to them.
It finally gives us a legal definition of what crypto-origin means: a digital representation of a right, asset, or value that can be transmitted or stored electronically using distributed ledger technology (DLT)..
eEnrique Nieto Bracklemans, Spanish lawyer.
In any case, the new regulations want to avoid disguised Bitcoin ads. Otherwise, “there will be a back door to escape regulations if influencers are not taken into account in regulations.” This was stated by the head of the CNMV to the media.