The Spanish financial watchdog, the National Securities Market Commission (CNMV), has taken unprecedented action against a tech provider named Miolos, marking a significant step in the enforcement of cryptocurrency advertising regulations in Spain.
CNMV’s First Enforcement Action
In a ground-breaking move, the CNMV has commenced sanctioning proceedings against Miolos, citing “massive” advertising campaigns that failed to comply with the country’s strict cryptocurrency promotion regulations, which have been in force since January 2022.
Regulations and Compliance
Miolos stands accused of not including necessary risk warnings in their advertising materials and neglecting to submit these materials for CNMV review at least ten days prior to publication, as required by the January 2022 regulations.
The Importance of Regulatory Adherence
This case serves as a stark reminder of the Spanish regulator’s commitment to ensuring compliance with crypto promotion rules, with the CNMV emphasizing the importance of respecting these regulations for the protection of the public.
Spain’s Proactive Approach to Crypto Regulation
Spain’s proactive stance on cryptocurrency regulation, including its intention to adopt the EU’s MiCA framework ahead of the EU-wide deadline, demonstrates its commitment to providing legal certainty and safeguarding investors in the rapidly evolving crypto market.
Lessons from the United Kingdom
The CNMV’s approach reflects lessons learned from the United Kingdom, where regulators faced challenges with compliance and saw international crypto players exit the market due to stringent promotion rules. The FCA’s adjustment of compliance deadlines and issuance of detailed guidance highlights the complexities of regulating crypto promotions.
The CNMV’s action against Miolos is a landmark case in Spanish and European cryptocurrency regulation. It underscores the regulator’s resolve to enforce advertising standards and protect consumers, while signaling potential future challenges for the crypto industry in navigating compliance landscapes.