It should be noted that regulation of the cryptocurrency industry is not going smoothly everywhere. For example, Pakistan's Federal Investigation Agency made it clear the day before that it wants to ban cryptocurrency websites from being displayed in the country. Allegedly by doing so, they will protect citizens from being exposed to information about the blockchain world while hesitating to mess with it. Read more about this bizarre idea in a separate article.

How cryptocurrencies are regulated in Europe

The new CNMV regulations will apply to both large cryptocurrency companies and marketing platforms, as well as individual Influencers who promote digital assets to their subscribers. The latter will have to mandatorily disclose whether they receive remuneration for promoting cryptocurrencies. If so, the regulator will require Influencers – that is, popular people within the cryptocurrency community – to include “clear, balanced, unbiased and not misleading” warnings about the risks of cryptocurrencies in their promotional campaigns.


Note that this point is very important because many popular personalities within the blockchain industry take advantage of their notoriety in a bad way. For example, they promote projects without the appropriate publicity label, fail to disclose their connection to developers, and sometimes even talk about questionable cryptocurrencies in which they simply got a stake early on.

As this niche was previously largely unregulated, it created problems - and especially for newcomers. The latter followed the advice of celebrities on Twitter and bought certain coins when they should have already been sold. As a result, they lost money and quit the industry for good.

Rather, the National Securities Market Commission wants crypto not to be promoted as an “ultimative way to get rich”. Looking at the rise of Bitcoin and altcoins in a bull market, the average person might be under the impression that a fortune could easily be made on it – at almost any period of time. However, the crypto market has very high investment risks, up to and including complete loss of capital if an investor opens a position with borrowed funds from the exchange.

Spanish National Securities Market Commission

According to Decrypt’s sources, if any Influencer or platform in Spain that intends to launch an advertising campaign has more than 100 thousand subscribers, the Commission requires at least ten days’ notice of their promotions. If they fail to comply with the regulator’s requirements, the aforementioned categories of individuals and companies risk a fine of €300,000 or $342,000.

This is how Rodrigo Buenaventura, the head of the Commission, commented.

We are very happy that this initiative will bring a certain order to the promotion of cryptocurrencies, not only through traditional media, but also through Influencers. This is a new field for us and for many people. Of course there will be difficulties, but that always happens when you introduce regulations for something that wasn’t regulated before.

Cryptocurrency advertising

Buenaventura also pointed out that Spain is not the only country in the European Union that will soon be regulating cryptocurrency marketing campaigns. Here’s his rejoinder.

As Spain has now done, other countries are also deciding to get active in regulating advertising, rather than waiting a few years for centralised control on the issue across the EU.

Indeed, in many other countries around the world, regulators are beginning to increasingly monitor all aspects of the crypto industry. Last year, for example, the UK Advertising Standards Authority (ASA) banned seven cryptocurrency-related advertising campaigns. The regulator justified its decision by “seeking to protect” inexperienced consumers from the risks of investing in digital assets.

Cryptocurrency advertising in London

Overall, we believe that crypto really shouldn't be positioned as something that is most likely to enrich the average investor. He should be aware of all the risks of market volatility in order to form a realistic view of it. This way, investors can avoid creating new myths and misunderstandings about Bitcoin and altcoins. And at the same time start engaging with the industry with the right intentions.

What do you think about this? Share your opinion in our Millionaire Crypto Chat. There, discuss other topics that affect the digital asset industry as well.