Spain’s CNMV Initiates First Case over Crypto Ad Regulation Breach
Summary:
Spain's National Securities Market Commission (CNMV) has begun its first-ever sanction proceedings against a company called Miolos S.L for allegedly flouting cryptocurrency promotion rules. The CNMV claims that Miolos failed to include necessary risk warnings in its advertising campaigns and didn't seek regulatory approval for them. This case represents the first time the CNMV has initiated proceedings for breaches of crypto advertising regulations, highlighting the importance of regulatory compliance in this sector.
Spain's main financial watchdog, the National Securities Market Commission (CNMV), has initiated the first ever case in relation to breaches of cryptocurrency promotion regulations in the nation. The announcement, relayed on November 8, informs that sanction proceedings have begun against Miolos S.L., following two extensive advertising campaigns in September and November 2022 that failed to meet the regulatory norms. The CNMV accuses Miolos of disregarding the crypto laws set forth through a circular in January 2022, in that they omitted vital risk warnings and failed to submit their campaigns for the CNMV's consent. The directive necessitates companies to make their promotional content available for verification at least ten days prior to release. Correspondingly, the announcement denotes this as the premiere time the CNMV has instigated sanction procedures for crypto promotional rule infringements, reiterating to the public the importance of compliance. The Spanish regulator also emphasized that Miolos has the right to challenge the charges. Spain has confirmed its plan to adopt the primary universal EU crypto framework, Markets in Crypto-Assets (MiCA) ahead of the deadline allocated to EU states to offer legal assurance and investor protection. Concurrently, as Spain delves into crypto promoting supervision, it can draw reference from the UK's example. In the UK, regulatory enthusiasm to pursue crypto promoting rule breaches led to a widespread inability amongst businesses to meet the regulations and a subsequent exodus of prominent international exchanges from the market. The Financial Conduct Authority (FCA) had to first prolong technical compliance deadlines to 2024, and later had to publish "finalized non-handbook guidance" that reiterated the rules of compliance.
Published At
11/9/2023 8:53:32 AM
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