Spain demands control of cryptocurrency advertising

The National Securities Market Commission (CNMV), the entity responsible for regulating and supervising the Spanish stock market, requires Internet companies such as search engines and social networks to stop providing advertising services for those investment platforms in cryptocurrencies that they do not comply with legal regulations or are not registered to offer this type of financial services.

The regulatory body explained that large internet service providers are granting important advertising space to different investment platforms that are not authorized to provide financial services with cryptocurrencies.

The president of the CNMV, Rodrigo Buenaventura, stated that “it is unjustifiable that companies that broadcast paid advertising on social networks or search engines profit by admitting advertisements from pirate entities, which are publicly warned as unregistered platforms.”

Users under risk

According to Buenaventura, this situation is very worrying because in addition to incurring in the violation of the entity’s regulations, the population runs a very high risk because they can go to request the services of a company that does not comply with all legal regulations, and be defrauded.

Unregistered companies “are endangering their own customers by advertising these services, making them fall for various scams.” Bonaventure explained

According to the information, the CNMV will provide time for companies to take the pertinent measures and make the necessary changes to protect their users. However, he warned that if his demands are not resolved, “actions on the matter will be taken as proposing regulations that oblige companies to comply with these requirements.”

The CNMV already has regulations requiring advertising campaigns linked to cryptocurrencies aimed at more than 100K users to previously inform the regulatory body of their scope.

M. Rodríguez

Source: crypto247.com