The CNMV’s Disciplinary Action Against Miolos
The National Securities Market Commission (CNMV) of Spain has initiated disciplinary action against Spanish technology company Miolos S.L. for violating crypto promotion rules that may mimic similar rules laid out by the UK FCA. The regulator alleges that Miolos launched two campaigns in 2022 that violated the CNMV’s requirement to submit material ten days before publication. Miolos also allegedly excluded warnings about the risks of crypto. The CNMV issued a circular with the promotion rules in January 2022.
Regulator’s Response and Investigation
Crypto asset campaign operators must communicate efforts targeting more than 10,000 individuals to the CNMV 10 days before launch. Head of the financial regulator, Rodrigo Buenaventura, said this is the first case to be opened for non-compliance with its rules. The financial regulator said the enforcement action was “to remind the public of the need to follow and respect” its regulations. In addition to the Miolos case, the regulator is investigating four other potential infringements.
Spain’s Implementation of MiCA Bill
Spain plans to enforce the European Union’s Markets in Crypto-Assets (MiCA) bill earlier than most countries. It wants to benefit from the bill’s legal clarity and investor protection laws. On Wednesday, US crypto and stockbrokerage Robinhood announced plans to launch in the EU because of the clarity that European rules afford. Robinhood’s CEO, Vlad Tenev, said that clear rules would allow it to offer “select” crypto assets to millions of customers.
European Regulatory Developments
In the meantime, the European Banking Authority is developing liquidity requirements for stablecoins ahead of the launch of MiCA. The consultation paper came days after the Bank of England and the UK Financial Conduct Authority issued proposals for stablecoin payment systems.
Spain Can Learn From FCA Rules
The FCA’s new crypto promotion rules only allow registered and authorized companies to release crypto promotions. The regulator has only authorized a handful of companies to release advertising material on behalf of other companies. The move has seen many crypto companies exit or be added to the regulator’s alert list for non-compliance. A 2019 opinion piece in the Financial Times said the FCA’s detailed rules sometimes conflict with general rules of doing business fairly and treating customers well.
Hot Take: Understanding Regulatory Differences Between Spain and UK
The difference in regulatory approaches between Spain’s CNMV and UK’s FCA highlights varying perspectives on promoting cryptocurrencies within Europe. While Spain aims to implement EU’s MiCA bill early for legal clarity, it can learn from FCA’s approach and avoid overly burdensome rules that may hinder compliance among stakeholders.
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