The National Stock Market Commission (CNMV), Spain’s leading financial regulator, has issued a stern warning against fraudulent cryptocurrency promotions on social media platforms and emphasized the importance of adherence to local laws. CNMV’s head, Rodrigo Valbuena, revealed these concerns during a speech at the Deloitte annual conference for the Spanish financial sector.
Illegal use of Spanish actors and media identity
In his address, Valbuena shed light on the deceptive crypto advertisements that have been circulating on social media platforms, particularly X (formerly Twitter). These ads exploit the images of Spanish actors and mimic the design and identity of national media outlets, all with the intention of soliciting money and personal data from unsuspecting investors. Such deceptive practices pose significant risks to investors and tarnish the reputation of legitimate actors in the crypto space.
Valbuena underscored that Spanish legislation places the responsibility squarely on “internet companies, media, and social networks” to take proactive measures against investment promotions by unlicensed entities. Failure to comply with these regulations could result in sanctions. The CNMV is committed to enforcing these rules rigorously and ensuring that those responsible for fraudulent promotions are held accountable. Valbuena stated,
“I can assure you that we will scrupulously exercise all our capacities, supervisory powers, and our supervisory and sanctioning powers in these cases.”
In response to the growing challenges posed by fraudulent crypto promotions, the CNMV announced plans to bolster its capabilities. The regulator intends to increase its staff by 15% as part of its efforts to address the rising number of crypto-related violations. This move reflects the CNMV’s commitment to safeguarding investors and maintaining the integrity of the financial market in Spain.
First case against a technology provider
The CNMV recently made headlines by initiating its first-ever case against a technology provider for violating crypto promotion rules in Spain. The target of this action is Miolos, a company responsible for two “massive” advertising campaigns conducted in September and November 2022.
Miolos failed to include risk warnings in its promotions and neglected to seek authorization from the CNMV for its campaigns. This marks a significant step in the regulator’s ongoing efforts to combat illicit crypto activities within the country.
Spain has reaffirmed its commitment to implementing the Markets in Crypto-Assets Regulation (MiCA), a comprehensive framework proposed by the European Union. In an effort to provide legal certainty and investor protection, Spain intends to adopt MiCA even earlier than the EU’s prescribed deadline of July 2026 for member states. This proactive approach underscores Spain’s dedication to regulating the crypto industry and fostering a secure environment for both investors and businesses.