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The Spanish Securities Market Commission required prior notification of advertising with a focus on cryptocurrencies
Spain introduces restrictions for advertisers regarding the display of crypto-oriented services. This is reported by The Financial Times with reference to the Commission on the Securities Market of Spain. Spain is reportedly the first European country where the financial regulator has been given permission to control the advertising market.
Starting in March, celebrities, as well as their business partners, will have to notify the authorities of their intention to publish advertisements for crypto services. In addition, all celebrities will also have to notify regulators when they receive payments in cryptocurrencies for the provision of services. Advertisers and influencers face fines for non-compliance. However, the size of the sanctions is not specified. As stated in the Commission, the tightening of regulation will bring “some order” in the control of cryptocurrencies.
Earlier, a tougher step was taken in Singapore. The editors wrote that the Monetary Authority of Singapore banned the advertising of cryptocurrencies in public places. According to the innovation, celebrities are also prohibited from advertising cryptocurrencies on social networks. The regulator allows advertising services only on the crypto business’ own websites, mobile applications or official social media accounts.
Recall that at the end of October 2021, the Central Bank of Spain began accepting applications for registration of companies providing cryptocurrency services. According to the wording, all companies (including financial institutions) are required to apply for registration through the electronic registry. The regulator may spend up to three months to review each application.
As part of the consideration, the Central Bank will analyze the risks of the applicant company. For example, the geographical location of the service’s customers, their capital, as well as information about the business model of the service itself will be taken into account.
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