The measure would happen due to the advertising display of the Bit2Me firm in Madrid. This initiative will face consultation from the competent authorities before its approval.
The Spanish National Securities Market Commission (CNMV) accelerates implementing bitcoin advertising and many other cryptocurrencies.
This resolution came to terms on March 25 by the president of that organization, Rodrigo Buenaventura, during his presentation at the “Observatory of Finance” conference organized by El Español.
Buenaventura noted a risk in the massive bitcoin advertisements that have come to release in recent times. For this reason, he considers the CNMV’sCNMV’s measure to control the advertising of cryptocurrencies “correct and timely.” In any case, it is more important to “get the regulation right” rather than rush into putting it into practice in the official’s opinion.
Buenaventura describes that the increase in advertising campaigns that incorporate concepts typical of financial products such as “investment or profitability” is under inspection in that country’s streets.
Measure to Control the Advertising of Cryptocurrencies
Various sources sustain that new measures, which appeared at the beginning of March, could have been coming to terms due to a campaign by the Bit2Me exchange.
This company deployed a campaign of 800 posters around Madrid in which it promoted the use of bitcoin. However, the CNMV receives warnings that will control cryptocurrencies’ advertising after the circular sees its release.
The new provision gives total power to the CNMV “to submit to authority or other forms of administrative control (including the introduction of warnings) the advertising of crypto assets or other assets and instruments presented as investment objects.”
In this sense, the head of the CNMV indicated that this kind of product in the formation of prices is not transparent and involves a high speculative component that can lead to the total loss of the investment. He stated that they are products where there is still no European regulation that provides guarantees and protection similar to those applicable to other financial products.
The CNMV had previously warned in February 2021: “in recent months, numerous cryptocurrencies, including bitcoin and ethereum, have experienced high volatility, which has also come with a significant increase in advertising, sometimes aggressive to attract investors.”
Bitcoin is in the Eye of the Storm Due to Criticism from the CNMV and the Bank of Spain
Bitcoin as a payment mechanism has been the center of criticism from the CNMV and the Bank of Spain. The institutions issued a joint statement in which they sustain that an injection of capital into cryptocurrencies would cause extreme volatility, complexity, and a failure regarding transparency.
The position of the bank and the CNMV has not got renewal since three years ago. They also warned that it was “speculative bubbles” and an “unregulated space.” Now that the reach of Bitcoin has come more clearly to mutual funds, corporate capitals, and companies, entities speak of “risks,” lack of liquidity, and manipulation.
Meanwhile, bitcoin seems to be unaffected by the criticisms that state entities make of it. With ups and downs, its price continues to trend upward. At the time of writing, bitcoin’s cost has risen about 4% in the last 24 hours and stands at $ 54,628.
By: Jenson Nuñez
